Anderson Business Advisors Podcast

Real Estate’s Biggest Tax Loophole Cost Seg + 1245 Exchange Explained


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In this episode, tax attorney Toby Mathis sits down with Chris Streit, CEO of CSA Partners, to dive deep into cost segregation studies and how they can dramatically improve cash flow for real estate investors. They explore the biggest mistakes investors make with depreciation, explaining how the IRS treats properties as single assets when they're actually composed of multiple components that depreciate at different rates. Chris breaks down the mechanics of cost segregation studies, revealing how even a $200,000 rental property can generate $40,000 in year-one deductions instead of just $5,000-$6,000 annually. The conversation covers the impact of the One Big Beautiful Bill's reinstatement of 100% bonus depreciation, the differences between engineered studies versus software-generated reports, and strategies for minimizing depreciation recapture through 1245 exchanges. With over 20,000 studies completed and minimal audit issues, Chris provides expert guidance on audit-proofing returns, maximizing tax savings throughout the property lifecycle from acquisition to sale, and debunks common myths about depreciation timing and syndication eligibility.

Highlights/Topics:
  • 0:00 Biggest Mistake Real Estate Investors Make
  • 5:15 Why Regular Investors Should Care About Cost Segregation
  • 8:45 What is a Cost Segregation Study
  • 12:20 Real Life Cash Flow Examples
  • 15:30 Engineering Studies vs Software Studies
  • 20:45 Audit Concerns and IRS Statistics
  • 25:10 One Big Beautiful Bill and Bonus Depreciation
  • 30:15 Depreciation Recapture and 1245 Exchanges
  • 35:40 Cost Segregation and 1031 Exchanges
  • 38:20 Advice for Investors
  • 40:50 Cost Segregation on Syndications
  • 42:30 Biggest Myths About Depreciation
  • 44:15 Closing Thoughts
  • Share this with business owners you know
  • Resources:

    Learn more about Ryan Gibson and Spartan-Investors https://spartan-investors.com/

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    https://andersonadvisors.com/strategy-session/?utm_source=real-estates-biggest-tax-loophole-cost-seg-1245-exchange-explained&utm_medium=podcast

    Tax and Asset Protection Events

    https://andersonadvisors.com/real-estate-asset-protection-workshop-training/?utm_source=real-estates-biggest-tax-loophole-cost-seg-1245-exchange-explained&utm_medium=podcast 

    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

    ...more
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