Cost segregation and how to keep rental losses in future years

[Mikey Liu]

Hi all - 

I understand the benefits of cost segregation in year 1 and how you can front load the depreciation of the unit. However, in future years, isn't the depreciation much less? If so, then how can one still maintain rental losses on a unit? Any thoughts or insights into this would be much appreciated. Maybe the strategy is to buy another new rental every year and do a cost segregation study on that one so that net net you have rental losses across the portfolio? But what if you only have this one rental property and don't intend to add? Are you essentially going to be showing net rental income in future years?