Cost Segregation study and lump sum depreciation

[Jinhee Hann]

Does everyone know about cost segregation?

Thank almost hired a company at a cost of $4k, to do a cost seg study to offset my taxes. Then a cpa told me that that’s not necessary if I bought the property the same year that I’m doing taxes for. I can just provide the list of all the inventory and improvements that I made for the property and depreciate everything in lump sum. Without doing the cost seg study. That’s what I did and it created a huge loss on paper to offset my taxable income. This was great since 2020 (which is the tax year that I just filed my taxes in October this year AND when I bought the property) was the highest income grossing year for me and I needed as much write off as possible. Just FYI. Talk to your cpa for details