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Updated over 2 years ago,
Worth doing a Cost Segregation on a my quadruplex?
Hi BP Community,
I'm not too familiar with Cost Segregation and was hoping to get a little input from someone who is... I inherited a quadruplex in 2018 and assumed the mortgage which was right around $500k. I had an appraisal done at the time which appraised it at $800k. The property is now worth roughly $1.4mm and cash flows nicely. I own 3 rental properties currently and am a Realtor so I'm labeled a "real estate professional" in the eyes of the IRS. I did well last year with real estate sales but was killed when it came time to pay taxes. I'm trying to think of ways to bring my tax liability down and thought doing a cost segregation on the quad might be beneficial. However I'm not sure where to start...
I have put roughly $150k into the quad since purchasing it (roof, siding, lift station, interior remodel, HVACs, etc).
I'm meeting with my CPA tomorrow to discuss the benefits of doing a cost segregation study on the quad. I'm not sure he's too familiar with this process so I wanted to do more research before meeting with him. Any suggestions on where I should start? Any guidance is much appreciated!