In this episode of the Real Estate Investing Rocks, Angel sits down with cost segregation specialist Mark Gross of Cost Segregation Services Incorporated to unpack how real estate investors can strategically use cost segregation to accelerate depreciation and reduce tax liability.

They discuss how the strategy applies to short term rentals, multifamily properties, and even house hacking situations, along with the importance of timing and understanding IRS guidelines.

Topics Covered

• What cost segregation really is and how it works
• Why the first year of ownership can create the biggest tax advantage
• How bonus depreciation impacts investors
• Understanding recapture and why timing matters
• When cost segregation makes sense and when it does not
• How house hackers can potentially benefit by segregating the rental portion of a property
• Why investors should proactively plan instead of defaulting to straight line depreciation

Memorable Quotes

• “Investing is a job. You need to line these things up so you do not find yourself in a tax laden situation.”
• “Reducing your tax liability does not mean you are doing something wrong. It just means you do not want to pay more than you legally have to.”

Connect with Angel: https://www.linkedin.com/in/angel-williams-re/

Connect with Mark: https://www.linkedin.com/in/jmarkgross/