Does savings from a cost segregation study mean you pay more in taxes later?

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In the end you’ll get the full depreciation amount as MACRS. Consider the cost seg costs and if you really need more depreciation up front.

smart

Yes, it’s an accelerated write off; when you sell the taxes will be higher due to the lower cost base of the asset.

Unless you 1031 it… (further deferral)
Or inherit it to your children… (rebase at market value)

Yes but if your deduction is more than you can recognize initially, you can carry it forward.

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Seeking advice / recommendations:
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I am having offers from

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From this week's issue of Barron's. Thought I'd share.

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🙏🙏🙏

Additional Posts in The Real Estate Bowl

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