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Cost Segregation on 2 Separate Townhomes
I'm looking for some advice around cost segregation.
I purchased a townhome in 2019 that has now been an LTR for two years. I purchased a separate townhome in 2021 that I am currently house hacking in and plan to turn into a rental property in the future. I purchased both of these homes as new construction. I plan to hold these properties another 5-10 years as of right now. My question is does it make sense to do two separate cost segregations for these town homes?
When tax planning with my CPA earlier this year I asked the question around what best practices are his real estate investor clients using for cost segregation and does it make sense for me to?
I was told it doesn't make sense usually to do a cost seg if the purchase price of a home isn't $1 million or above since they are fairly expensive.
My goal with potentially doing a cost segregation is savings on taxes in the short term to acquire more properties over the next few years.
Most Popular Reply
Quote from @Ashish Acharya:
If your losses are not limited not or the losses are limited now but can be released in the future, you should be cost segs while you can still get 100% bonus depreciation in 2022.
But more info is needed to conclude.
I'm in the same boat but didn't understand your response. Can you expand?