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Updated over 4 years ago,
Cost Segregation Strategies
Hello all,
As my portfolio grows I'm looking to become more efficient, especially in the realm of tax strategies. I have heard of cost segregation and bonus depreciation and I have a base level understanding of what they are and how they work but I don't feel real confident on how to properly utilize them efficiently.
For example, I'm under contract on a 42 unit deal and a 40 unit deal both set to close about 2 months apart, these will be long term buy and hold properties for me. Would I benefit from utilizing a cost segregation study to take bonus depreciation on these? I'm confident that with the property improvements and regular depreciation I will be able to show a loss on paper in the first 2-3 years regardless.
I would also like to know why or why not so hopefully I can learn something.
Thanks!