007. Cost Segs, Bonus Depreciation, and Partial Asset Dispositions

Major League Real Estate Podcast

Isaac Weinberger, a cost segregation expert, discusses the benefits and considerations of cost segregation in real estate. He explains how cost segregation accelerates depreciation benefits and allows investors to frontload their depreciation deductions. Isaac also addresses the depreciation recapture and bonus depreciation, as well as the factors to consider when deciding on cost segregation for syndicated deals. He emphasizes the importance of quality cost segregation studies and the potential extension of bonus depreciation. Overall, cost segregation can provide significant tax savings for real estate investors. In this conversation, we discuss the benefits and strategies of cost segregation studies for real estate investors. We cover topics such as the allocation of bonus depreciation, partial asset dispositions, and the benefits of cost segregation studies throughout the ownership period. Takeaways

• Cost segregation accelerates depreciation benefits and allows investors to frontload their deductions.
• Depreciation recapture and bonus depreciation are important considerations in cost segregation.
• The decision to do a cost segregation study should be based on factors such as hold term, property size, and tax liability.
• The quality of the cost segregation study and the expertise of the provider are crucial.
• Bonus depreciation is currently being phased out, but there is potential for extension in the future. Cost segregation studies can help real estate investors allocate bonus depreciation and accelerate tax deductions.
• Partial asset dispositions allow for the deduction of the value of replaced assets, and cost segregation studies make this process easier.
• Cost segregation studies can be beneficial throughout the ownership period, not just at the beginning.
• AI and virtual assistants can be used to streamline workflow and delegate tasks.