Cost segregation strategies to minimize your taxes (Ep584)
Summary
This podcast episode discusses cost segregation strategies for short-term rental properties, emphasizing the ability to depreciate the costs of renovations, new furniture, and other durable items. Hosts can deduct these expenses or depreciate capital expenditures, but it requires a specialist to perform a cost segregation study to maximize tax savings.
Key Insights
- •The cost of a cost segregation study can range from $3,000 to $10,000, and is a tax write-off.
- •A cost segregation study is an engineering study of a property that breaks it down into its components, identifying the value of each component and calculating the depreciation schedule.
Action Items
- ✓Discuss cost segregation with your accountant to ensure they understand it and can apply it for tax purposes.Effort: lowImpact: medium
- ✓Consider getting a cost segregation study done in the first year of property ownership or before making renovations to maximize tax benefits.Effort: mediumImpact: high
Tools & Resources
- →Cost segregation companies: The podcast mentions that a company does cost segregation studies. The name of the company is not mentioned
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