How To Do A Cost Segregation Study: When It Saves You Money And When It Doesn’t

In this episode, Toby Mathis sits down with cost segregation expert Chris Streit of CSA Partners to break down what cost seg studies really are—and when they actually make sense. Request a FREE Cost Segregation Benefit Analysis 👉 https://aba.link/594e87 Real estate investors hear about accelerated depreciation all the time, but understanding how it actually works—and when it doesn’t—can make a massive difference in your tax strategy. We walk through the fundamentals of cost segregation, from how properties are broken into individual components to why certain assets can be depreciated over 5, 7, or 15 years instead of decades. Learn more about CSA Partners https://csap.com/ You’ll learn how this creates significant upfront tax savings and improves early cash flow on your investments. Would you like to learn more about protecting your assets and minimizing taxes? Schedule a free consultation here: https://aba.link/7grc Toby and Chris also unpack the real intent behind these rules—why the government incentivizes real estate investment—and how bonus depreciation can supercharge those benefits in the early years of ownership. Whether you’re new to cost seg or trying to decide if it’s worth it for your next deal, this episode covers who should use it, who shouldn’t, and the biggest misconceptions investors have when relying on generic advice or software. 🔔 Don't forget to subscribe for more insights on real estate investing and business strategies! Show Notes: 0:00 Intro & what this video covers 0:29 What is a cost segregation study? 1:12 How cost seg accelerates depreciation 2:01 Bonus depreciation & year-one write-offs 3:02 Why the government incentivizes cost seg 4:01 Who should consider a cost seg study 5:42 Do you need to own the real estate? 6:06 Example: $500K duplex breakdown 7:26 Real tax savings from cost seg 8:50 Using cost seg to offset rental income 9:07 Using vs. carrying forward losses 10:00 Real estate professional vs passive investors 11:05 Using cost seg across multiple properties 12:01 Can you do cost seg after the year ends? 13:02 Buying property late to reduce taxes 14:19 Best vs worst property types for cost seg 17:04 Extreme examples (mobile home parks, high % write-offs) 18:25 Red flags & bad cost seg providers 20:33 Biggest audit risk: land value mistakes 22:08 Importance of site visits & proper substantiation 25:20 Biggest mistake investors make 27:32 How to get started with a cost seg study --------------------------------------------------------------------------------------------------------- FREE TAX & ASSET PROTECTION WORKSHOP Register for an upcoming workshop today if you want to protect your business and personal assets from snoopy lawyers and creditors. Save Your Seat: https://aba.link/7gdd FOLLOW US: Instagram: https://aba.link/instagram Facebook: https://aba.link/facebook Twitter: https://aba.link/twitter LinkedIn: https://aba.link/linkedin TikTok: https://www.tiktok.com/@tobymathisesq ~~~~ CONTACT US Phone: 800.706.4741 Email: info@andersonadvisors.com Fax: 702.664.0545 ABOUT TOBY MATHIS Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at https://aba.link/tobyaba --------------------------------------------------------------------------------------------------------- WARNING: I will NEVER ask you to contact me through YouTube comments, telegram, or WhatsApp. I have a checkmark next to my name, and my comment will be highlighted. Fake accounts do not have that. Please be aware of fake accounts trying to scam you using my name and picture. The information provided in this video should not be construed or relied on as financial, investment, or legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice. #realestatetips #costsegregation #taxstrategy