Real Estate’s Best Kept Secret: Cost Segregation Explained | 24 Hour Cost Seg

Summary

This video explains how short-term rental investors can use a cost segregation study combined with the "STR Loophole" to generate significant tax deductions. CPA Brett Philips breaks down how to accelerate depreciation, creating a large "paper loss" in the first year of ownership. He details the specific tax code exceptions and material participation tests that allow STR hosts (unlike long-term rental landlords) to use these losses to offset active income, like W-2 wages, potentially eliminating their tax liability for the year. The video provides a clear example of turning a $500k property into a $125k first-year write-off.