Cost segregation strategies to minimize your taxes
Summary
This article from "Get Paid for Your Pad" discusses cost segregation strategies, a tax strategy that allows real estate investors, including STR hosts, to accelerate depreciation deductions and potentially save on taxes. The article emphasizes the importance of using specialized professionals for cost segregation studies and taking advantage of bonus depreciation. Hosts should consider exploring cost segregation to potentially lower their tax liabilities.
Key Insights
- •Cost segregation involves dissecting a property's components to accelerate depreciation deductions, potentially leading to considerable tax savings.
- •Recent tax amendments have elevated bonus depreciation to a staggering 100% for qualifying assets, enabling investors to claim the entire depreciation deduction in the very first year.
Action Items
- ✓Engage specialized professionals to conduct comprehensive cost segregation studies, especially for recently acquired properties or those with significant renovations.Effort: highImpact: high
- ✓Conduct cost segregation studies promptly after property acquisition.Effort: mediumImpact: medium
Tools & Resources
- →yonaweiss.com: Yonah Weiss can be found on various social media platforms, including LinkedIn, Twitter, and Instagram, and through his website at yonaweiss.com or Madison SPECS (Specialized Property Engineering Cost Segregation) at madisonspecs.com.
- →Madison SPECS: Madison SPECS (Specialized Property Engineering Cost Segregation) at madisonspecs.com.
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