Perform a cost seg study on JUST the ADU.

Can I use cost segregation studies I've done on my apartment buildings to not pay any self-employment taxes on my real estate commissions?

Someone out there must study those submarkets pretty heavily and can explain how housing stock has changed or not changed month over month the last few months...I dove into the propaganda video that's making the rounds.

Quote from @Melanie Baldridge: In 2025 the bonus depreciation rate is 40%.This means that if you bought a property for $1M in 2025, did a cost seg study and found $300K in eligible assets that you could depreciate, you could take 40% of that $300K as bonus depreciation to offset your income in the first year.40% of $300K = $120K.You then apply that $120K to the owner’s personal tax rate to find the final amount that they can defer in year 1.If your tax rate is 37%, you can defer $66.6K.This is a big deal even at the 40% bonus depreciation rate this year.It’s a massive benefit 

Wherever you took your broker's class you should have ample study materials.If you are talking about your real estate agent's license in NJ (that is not a broker's license), you need to take the initial class at an accredited agency and they will give you all of the materials after you finish the 75 hours for the test. 

Recently, I conducted a cost segregation study on the property shortly after converting to a STR (converted June 1 2024), and I want to ensure I file my taxes correctly and legally given this change in circumstances.

She spend an intensive 2 months studying real estate principles, law, and finance, and studying RV parks in both counties.  

Quote from @Jonathan Bock: Quote from @Stuart Udis: @Jonathan Bock Does this come before or after the $3k cost segregation study and the $10K course on how to scale through renting rooms? 

Continue to read and study but it's a lot of information!!

I have been studying whole sale real estate for about a year now.