Cost Segregation - Asking the Right Questions

[Christopher LHeureux]

Been reading a few threads, and there is lots of good advice. Looking to validate my understanding and have a few questions...

What I think I know: A cost seg will advance deprecation that will accumulate if not used that year. For example, if my depreciation is $100k in the first year but I only have $10k of passive income, the remaining $90k of NOL will move to year two. I don't think this is 100% correct based on how tax brackets affect deductions, but I think it's a wash. Do I have this right?

What happens if the current rental becomes my primary residence? I currently have a rental and the cost seg analysis says that the seg will pull forward depreciation from $14k to $134k (from a reputable company that posts here) in the first year (which was 2022). What if I move back in a few years? Could I carry these losses to offset other passive income ventures (rent, interest from personal loans, syndication profits)? (In the military and might end up back there.)

What about a property that needs a complete rehab and is worth $136k now but ARV is likely to be around $225k? I am rehabing an STR and several people say do the cost seg up before the rehab. (It will likely take a year and the property was acquired this year). But if I do it now, the result is not worth it and not sure if pulling forward depreciation is worth it at such a low number.

Ignorant question - if you cost seg a property and 1031 exchange it, can you depreciate the new property? How does that work?

Last question, does anyone have a good way to figure out the ROI on a cost seg? Is it simply when the tax savings outweigh the cost of seg? I am more thinking about the opportunity costs - meaning what I can do with the tax savings now and what income that generates. Thoughts?

Thanks all

-chris