All Forum Posts by: Chris Dawson

Thanks, everyone lots of useless information here to digest. We will be tearing down the property and then re-building so all the hours spent on that can contribute to the hours needed to qualify as a REP?

Hi Zachary, 

Thanks for the reply. From my understanding, you have to spend 750 hours of annual involvement and 51% of your work relating to real estate to utilize cost segregation to offset income tax.

Anything else I'm missing? I do not want to go down the STR route.

Hi, I am in the process of purchasing my first investment property. I am looking at a house close to my primary residence for around 1.8M; I plan to rent it out for the first year while I obtain permits and plans to build a larger house. The property sits on 0.37 acres and has lots of potential. 

I am a business owner and have an S-corporation. My wife is currently studying for her real estate license, so we can perform a cost segregation study on the property when we buy one to reduce our tax burden for 2024. I see the House passed the Tax Relief for American Families and Workers Act of 2024, meaning that bonus deprecation may get extended. 

From my understanding, you can only claim 60% for 2024; I do not understand how much bonus/accelerated depreciation we could take on a 1.8M property without a remodel. Can we still perform a cost segregation study on this? and if so, what percentage could we claim as a loss? 

Thanks in advance.