Cost Segregation Questions - Newly Aquired Property

[Travis Smock]

My business partner and I just purchased a 6-unit multi-family property and are curious if a cost segregation study would be beneficial and when the depreciation can be applied. We own other rental properties but have not gone this route before. A few of the details and questions I have are below. Any help is much appreciated.

1. Low-dollar property (sub $200k). 6-unit multifamily. Built in 1970s. Low land value (less than 20%).

2. I am a full-time Real Estate Professional (Agent with almost all other income coming from active and passive RE investments). My business partner owns a number of real estate properties he actively manages, however, the majority of his income comes from his other business. Will the cost seg benefit both of us?

3. We just closed on the property last week. If a cost segregation study is done in early 2025 can it still be applied to our 2024 taxes to utilize the larger bonus depreciation?

4. We plan to hold for at least 5-10 years and likely 1031 exchange into something larger or land. Does cost segregation bonus depreciation affect a 1031 exchange?

[Sean Graham]

Quote from @Jonathan Greene:

Reach out to @Sean Graham of Maven Cost Seg. This is all he does.

Thanks @Jonathan Greene! 

@Travis Smock that’s awesome to hear! 

1. Ok that’s fine 

2. It depends, but very likely could help you both

3. Yes you’ll get 2024 tax benefits 

4. That’s a good plan. 1031 is a bit complicated but you can continue to roll cost segregation benefits forward