Questions about tax savings on rental condo in Encinitas

[Jacob Munson]

Hi all, had a few questions about my condo in Encinitas which I originally purchased for $430k and maximizing tax benefits when I turn it into a rental in the coming year.

1) How do I figure out my adjusted cost basis for calculating annual depreciation? From my tax bill it looks like roughly 70% is land and 30% goes towards improvements of that value. Generally is the annual depreciation calculated off of the 30% improvement amount?

2) I've been reading/hearing about cost segregations a lot recently. To put it simply when do you need to have a cost seg study done? Is this for additional depreciation savings beyond just the annual 3.6%?

Thanks in advance for all the help!

Jacob