1031 and Cost Segregation

[Ginger Carr]

How does a 1031 exchange affect cost segregation? My parents purchased 3 newly built homes using a 1031 exchange this year. They plan on transferring these three properties to me as a gift before the end of 2021. I wanted to do a cost segregation but didn't know about cost basis or if it is possible because they were part of an exchange. Thank you.

[Bjorn Ahlblad]

@Ginger Carr Congrats on the properties! The fact they are in a 1031 does not matter to the Cost Segregation. Speak with your accountant-three properties are likely not enough to provide sufficient payback to do a study.