Need suggestions about using cost segregation study for tax

[Palak Patel]

Hi everyone,

I am a new in real estate investment. I purchased my first single-family rental last year on LLC and I did the cost segregation study on that property now I talk with my CPA and mention about the cost aggregation study for filing the last year tax return (2024)he said that I don't need to use it because anyway my tax return is going negative because of all the expenses of closing cost insurance HOA and everything so what would you suggest me that use my Cross aggregation study for my tax return or not.
thank you in advance for your response .

[Basit Siddiqi]

You should have had a conversation with an accountant prior to going ahead with the cost segregation study.

A cost segregation study breaks down a building to more components than just building and land. I.E. fencing, floating floors, etc.

The cost segregation study will accelerate the depreciation into earlier years. The question is will you benefit.

If you already paid for the study, you might as well apply it to to the return.

The next question is whether your accountant is properly applying it.

You may want to consider working with a CPA who specializes in real estate taxation.