Cost Segregation beneficial for older purchased homes

Cost Segregation beneficial for older purchased homes

Member since 2017 · 20 posts · 12 votes

Hey everyone!

I have a few homes that were purchased around 10- 15 years ago.  I was told in a couple of conferences that it still might be beneficial to do a cost segregation.  I reached out to our CPA and he said it probably is not worth it as it is already too old.  

Has anyone already done a Cost Seg for homes you purchased in the past?  Is it still beneficial?  

Thanks in advance!

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Julio GonzalezPro Member
Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
3y

As James said, you want to consider the basis of each home. A lot of cost segregation companies will do an analysis to help you determine if it's worth it or not. I'd reach out to one and have them run the numbers - that way you can be sure! @Edward Alicante

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  • Member since 2022 · 34 posts · 22 votes
    3y

    Years owned isn't the determining factor, what matters is the current basis of each building, which is the building's value minus previous depreciation (to summarize). If a rental home has a remaining basis of less than 200,000 then the benefit would be marginal. 

  • Julio GonzalezPro Member
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    3y

    As James said, you want to consider the basis of each home. A lot of cost segregation companies will do an analysis to help you determine if it's worth it or not. I'd reach out to one and have them run the numbers - that way you can be sure! @Edward Alicante

  • Accountant · Santa Barbara, CA · Member since 2016 · 213 posts · 66 votes
    3y

    @Edward Alicante

    There's a good bit more effort as you'd have to file a change of accounting method

  • Accountant · Member since 2023 · 18 posts · 6 votes
    3y

    If the basis is at least 300k- definitely worth taking a look.

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