July 9, 2025

Most landlords who discover cost segregation have the same two-part reaction. First, excitement: a study can front-load years of depreciation into a single year and throw off a six-figure paper loss. Then, deflation — their CPA explains that the loss is “passive,” so it can’t touch their W-2, their business income, or their capital gains. Here’s the good news. There’s a key that unlocks that...

Cost segregation studies can save real estate investors thousands of dollars a year on their tax bill, even for smaller properties. But there are some important things to know to ensure you maximize your deduction and don't run afoul of the IRS.  We use DIY cost segregation but there are other companies who do cost segs, take a look and feel free to use whatever company you’d...