Cost Segregation Study

[Jeff Wheater]

Was wondering if anyone has done a cost segregation study on a SFH for tax purposes and bonus depreciation in Kansas City Missouri

[Julio Gonzalez]

@Jeff Wheater Determining whether to do a cost segregation study or not has a lot variables. What was the purchase price of your property? Will the documentation provided from the study hold up in an audit? Has your CPA provided you with a detailed cost/benefit analysis quote? Most cost segregation study companies provide the quote for free. If you need one, let me know and I'm more than happy to pull one together for you. Some other factors to consider - How long are you planning to hold this property? If less than two years, cost seg probably isn't a good route. Are you planning to do any renovations? If so, I always recommend getting the study done prior to rehabbing. If you paid ~$2k to get the cost seg study done, what is your ROI on that $2k? Do you have a current need for that cash flow generated from the tax savings? Could you go reinvest it in another property to build even more income? Would you have net income or net loss without the cost seg study? Are your real estate investments active or passive? Are your losses locked up against your passive income? There are a lot of factors to consider when get a cost seg study to determine if the benefits outweigh the costs. If you need any help or have any questions, feel free to reach out!