Accellerated Cost Segregation against w2 gains or stock income

[Ross Y.]

Team,

I’m entering into a new realm with investing and looking to offset other sources of income with cost segregation combined with accelerated depreciation from real estate professional filing status.

If the losses exceed my real estate income, can they be applied to other income sources. IE consulting, stock grants (RSU’s), straight W2 income?

I’m closing on a multi this week with DP from a 1031 and we think the accelerated cost seg will help with tax liability on those other sources.

This is my first time considering these strategies I’m being led to by my CPA. Can someone provide some insight?

IE… 200K stock income (treated as normal income), 200k w2, 50K consulting. 450K loss from cost seg

[Kelly Iannone]

@Ross Y.

Very important detail that was initially left out that your wife would qualify as a RE Professional as she manages the properties and shows no other income. I’m not a CPA but it’s my understanding that this would allow for the accelerated depreciation resulting in losses to be taken against your W2 and other income.

My husband and I have looked into either of us qualifying as RE Pro in detail but we just don’t because we both have W2 jobs. We were looking at doing a cost segregation on a 6-unit but I don’t think it’ll help much until we can actually realize the accelerated depreciation.