The basis of the original property is divided appropriately and depreciation is allocated prorata so that your adjusted cost basis is accurate and you then have only the allocated gain from that one unit to content with.  

Using the example above, the cost segregation allocations apply to “net tax basis” of $1,200,000 ($700,000 carryover + $500,000 excess basis).

I incorporated the cost to pump the sewer into the maintenance allocation since it is a biannual expense. 

Any new money added to the basis to complete the purchase, that is allocated to the replacement property improvements, is depreciated on a separate 27.5 year depreciation schedule.So, you see that you only get ten years of depreciation on the first $250K of the replacement property basis, not the 27.5 years that might be allowed over the class life of the property if it were purchased outright rather than acquired in an exchange.HTH

For starters you're going to have to create strict allocations for depreciation tables and expense allocations and have a very forbearing and understanding accountant.  

It's not going to matter how you allocate that 50K, either way it should be protected from taxes which is the entire point of the 1031.

If you think real estate is something you can get successful at by doing it 2 hours a week, you're going to get frustrated when you don't get anywhere...Allocate enough time, and spend that time focused on what you need to get done.The biggest reason I see part-time investors fail is that they are lazy.

As far as your stock portfolio allocation, why do you not have more in mid cap and growth stocks as well as international ex-US?

The value of the property excluding the land allocation can be depreciated.

As fund managers, it's important to have a historical perspective when it comes to investment strategies and where we allocate our money.