Nathan Sosa

Cost Seg Studies Save Taxes—Only If Passive Limits Allow

You own rental property and you've never done a cost seg study. that means you're depreciating everything over 27.5 years. same recovery period as the building itself. BUT. We can always go back to grab that tax savings but here's what nobody tells you early enough if your passive activity situation can't absorb the loss, §469 suspends it. big number on the study. zero impact on your return. run your passive activity position first. Then talk to us 👇🏽