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Updated almost 2 years ago,
Cost Segregation? Worth it?
I've been hearing the hype about Cost Segregation for a while and I wasn't sure i was a candidate. Still not. My w2 income wont be over $100k for 2022, I will hopefully be considered a RE professional and i had 5 properties, some already in the red due to rennovations. But a provider did a prelim estimate for me and it says that for my 5 properties i'd have increased depreciation of $177k and estimated tax savings in year 1 of $68k. Its just an "estimate" but i'm sure i'm supposed be wooed by it. Do these "free estimates" usually come out close to the truth and if so, do those numbers make sense for someone in my situation? I heard you could carry the the depreciation forward if you don't use it all but i'm not clear the dollar for dollar value. Are they saying i truly pay $68k less over time if i simply give them $18k today? what if my income is lower in future years? What do I need to consider that i'm not? Any advise is welcome! Thanks