All Forum Posts by: Frank Rubino

Hi all,

What type of property do you feel is best for a cost segregation/accelerated depreciation strategy?

I want to buy either a medium-sized multi-family building (6-8 units), or a portfolio of 10 single family rental homes.  I'm wondering which is a better fit for a cost segregation. With the 10 single-families, I'll have 10 roofs, 10 heating systems, 10 water heaters, and so forth, that can all be accelerated for depreciation calculations.  But would this have to be treated as 10 separated properties with 10 separated cost segregation studies?  Is it perhaps better to buy a multi-family "building" instead?

Thanks!
 

@Dave Foster

Dave, if I avoid taking any depreciation for the February-June period, and complete a 1031 exchange on the other unit, does that leave me with zero tax liability? Thanks.

@Scott Trench

Scott, thank you for your thoughtful response!

Here's my situation:

I purchased a two-family house in 2016 and lived in unit 1, while renting out unit 2. Then in February of this year, I moved, and started renting out unit 1 as well.

I want to sell the house and avoid taxes. I know unit 2 will qualify for a 1031 exchange as it's been rented since 2016, but what about unit 1? It's only been rented since Feb 2022. Would it make more sense to use section 121 for unit 1? 

@Tanvir Sattar no, this will be my first one.

The registration website seems to have a glitch. Be sure the check back as it gets closer.

@Theresa Mack I had the same problem. Hopefully it gets fixed as it gets closer.

@Chinyere Orie

Great! See you there!

@Stephen Keighery

Great! See you there!

Hi everyone,

Who else is planning to go to the annual Bigger Pockets conference this October in New Orleans? The hotel looks amazing and there is a big roster of speakers.

-Frank