Tax Implications after adding 3 units.

[David R.]

Hello everyone. Looking for a little guidance on my property in Los Angeles.

My long time CPA has passed away and we are looking for some guidance. 

We finished construction of 3 additional units on a property with a duplex zoned for 5 units. 

The 5 units were fully rented and performing as of November of 2021. The additional 3 units cost $600k 

and took approximately 2 years to complete. 

My question (we are newer investors) pertains to tax implications and depreciation. 

We have owned the property since 2016 and ran it the first five years as a duplex. 

I am curious as to how the amount spent adding the additional units ($600k) will affect our 2021

income tax return.

I have read a bit about cost segregation and was wondering if that might be an 

advantageous path for us. We do not plan on selling the property as we feel it is a keeper

long term. Thank you in advance for any thoughts and/or referrals. I do appreciate it.