Bonus depreciation -cost segregation study

[Jacob Michal]

Do you all recommend using the bonus depreciation status and cost segregation study for multi families or single families if yes why and if not then why?

[Lee Ripma]

@Chris Mason

With all due respect, this is a common misconception. It’s one of those “claiming a home office will get you audited” type myths. There are algorithm based studies that are way less expensive than an engineered cost segregation study (~$600 for res and $1300 for Commerical). I do these on my smaller properties and generate a ton of losses. The losses can be used to offset passive income or regular income depending on your tax situation. The new tax plan is a huge boon for all RE investors, even ones with inexpensive houses. This myth is so persistent and the value of cost segs so large that I write a blog post explaining why even someone with a very inexpensive property can benefit from these studies.