A post on recapture.People are concerned about recapture when they cost segregate their improvements and for good reason.Recapture is real, and those deferred taxes will need to be paid.But fear not!

Here's an article with things to consider when selecting a cost segregation company.

All the fine print came in subsequent e-mails.

Is my thinking correct that homes in highly appreciated areas won't benefit as much from Cost Seg. 

And hopefullt you won't need a traffic light, which costs in excess of $100,000, though you will be required to do a traffic study. 

A cost segregation study was performed on this single family home in Iowa City, Iowa with a depreciable cost basis of $649,900.

Is this normal cost or high?

There will be a huge gap between coverages and replacement costs. - Renters are majority uninsured. - In September 2024 the FAIR Plan had $6B in exposure to the Palisades alone.

However, the depreciation claimed while the property was a rental must be accounted for upon the future sale of the personal residence, which could increase your capital gains tax liability.The adjusted basis of the property (original cost minus depreciation) will be used to calculate gains or losses at the time of sale.

During this renovation period would you, as the lender, want an Actual Cash Value or Full Repair Cost policy in place?