Anderson Business Advisors Podcast

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


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In this episode, host Toby Mathis, Esq., welcomes returning guest Chris Streit to break down the truth about cost segregation studies — when they work, when they don't, and who should consider one. Chris explains how cost seg studies accelerate depreciation by separating a property's components into shorter-lived assets, enabling large year-one deductions under bonus depreciation rules. They walk through a real-world example of a $500,000 duplex to illustrate potential tax savings, and discuss who qualifies to use those losses — including real estate professionals versus passive investors.

The conversation also covers the best and worst property types for cost seg, how to use studies to offset rental income across a portfolio, and whether you can apply a study retroactively after a tax year has ended. Chris shares critical red flags to watch for when hiring a cost seg firm, including improper land valuation, lack of site visits, and insufficient substantiation — all of which can expose investors to serious IRS risk. Tune in for expert, no-nonsense guidance on one of real estate's most powerful — and misunderstood — tax strategies.

 Highlights/Topics:
  • 00:00 Intro - Bonus depreciation and year one write-offs
  • 04:01 Who should consider a cost seg study
  • 06:06 Example 500K duplex breakdown
  • 10:00 Real estate professional versus passive investors
  • 14:19 Best versus worst property types for cost seg
  • 18:25 Red flags and bad cost seg providers
  • 22:08 Importance of site visits and proper substantiation
  • 25:20 The biggest mistake real estate investors make
  • 27:32 How to get started with a cost seg study
  • Share this with business owners you know
  • Resources:

    CSA Partners (Chris Streit's company — cost segregation specialists): https://csap.com/

    Request a FREE Cost Segregation Benefit Analysis: https://aba.link/594e87

    Anderson Advisors Free Workshop (asset protection & business structure): https://aba.link/7gdd

    Anderson Advisors

    https://andersonadvisors.com/

    Toby Mathis YouTube

    https://www.youtube.com/@TobyMathis

    Toby Mathis TikTok

    https://www.tiktok.com/@tobymathisesq

    Clint Coons YouTube

    https://www.youtube.com/@ClintCoons

     

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