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Updated 7 months ago,

User Stats

151
Posts
21
Votes
Sean Gallagher
Pro Member
  • Texas
21
Votes |
151
Posts

Cost seg / accelerated depreciation to offset W2 - thoughts

Sean Gallagher
Pro Member
  • Texas
Posted

Please chime in if you have done this.. Short term rental with cost seg study/ accelerated depreciation to offset W2 income. Say you're doing this on a 4 unit that appraised for about a million. And you do a cost seg study, If you plan to hold this property long term does it make sense to do this? Meaning will it wipe out the majority of your write-offs moving forward? Because you wouldn't be doing 27.5 years anymore. Say you do 5 years. Once the 5 years runs out you'll only be able to offset your cash flow with mortgage interest? Unless you do upgrades to depreciate, like another roof, large appliances, AC unit etc. I guess you would have to buy another property and do the same thing to keep chasing write-offs. Seems risky? 

  • Sean Gallagher
  • Loading replies...