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Updated over 4 years ago on . Most recent reply
CPA question for Cost Segregation
My losses are passive due to W2 income. My 7 plex already show a small loss due to depreciation and expenses. Is Cost Segregation a waste of money? If my passive losses are capped it would seem more losses due to accelerated depreciation won’t benefit me.
Am I missing something here?
Most Popular Reply
Natalie Kolodij
Tax & Financial Services
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- Tax Strategist| National Tax Educator| Accepting New Clients
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Unless you have passive income from other sources to use it against...
You'll just be generating more losses that are then capped due to passive loss rules.
If you or your spouse may qualify in the future for RE professional IRS status it could make sense then, or if you have other rentals that are producing passive income great enough to utilize the offsets.
Kolodij Tax & Consulting