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Updated over 9 years ago,

User Stats

417
Posts
171
Votes
Jordan Decuir
  • Rental Property Investor
  • Katy, TX
171
Votes |
417
Posts

Depreciation Strategy

Jordan Decuir
  • Rental Property Investor
  • Katy, TX
Posted

I'm curious around the overarching strategy regarding accelerating tax depreciation through cost segregation. 

1) Does this approach generally make sense on single family rentals?

2) I have heard that the majority of the depreciation is taken in the first 5 or so years. With that being the case, is the general srategy to just accept the fact that there is no more (or not much more) depreciation after such time? Or is the strategy to then get out of the property (through a 1031 exchange perhaps) once the majority of the accelerated depreciation benefits are depleted to then take the accelerated depreciation on a newly-purchased property...rinse and repeat...rinse and repeat...?

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