What is a cost segregation study — and why are real estate investors and high earners using it to slash their tax bills?

Fred Passelli, CPA breaks down how a cost seg study reclassifies parts of a property (flooring, fixtures, countertops, carpet) into 3, 5, 7, and 15-year assets instead of depreciating everything over 27.5 or 39 years — and how 100% bonus depreciation can let investors write off close to half the depreciable basis in year one.

You'll learn:
• What a cost segregation study actually is
• Straight-line depreciation (39 years commercial / 27.5 residential) vs. accelerated depreciation
• How bonus depreciation and MACRS pull deductions into the early years
• Why the rental loss can offset W-2 or business income (real estate professional status & the short-term rental rules — more on those in upcoming videos)

Thinking about a cost segregation study for your property? Book a tax intro call: https://linktr.ee/Passellicpa

Passelli Accounting Services, LLC — Palm Beach County, FL
Tax Planning • Strategy • Bookkeeping
561-386-3997 | fredpasselli.cpa@gmail.com