How a Landlord Uses Cost Segregation to Slash Taxes

Lucas and Luna dive into cost segregation, a tax strategy that lets rental property owners accelerate depreciation and cut their tax bill by thousands. They break down how a real estate investor used a cost segregation study on a $1.2 million duplex to generate an extra $45,000 in depreciation in year one, lowering their taxable income and boosting cash flow. Lucas explains the IRS rules behind asset classification and how 27.5-year residential property can be partially reclassified into 5- and 7-year personal property. Luna questions whether the audit risk is worth it and they discuss the cost of the study versus the tax savings. Tune in for a concrete example of turning a tax bill into a strategic advantage for real estate investors. #CostSegregation #Depreciation #TaxStrategy #RentalProperty #RealEstateInvesting #CashFlow #IRS #TaxSavings #Landlord #Duplex #BonusDepreciation #Section179 #TaxWriteOffs #RealEstateWealth #Finance #FexingoBusiness #BusinessPodcast #Podcast Keep every episode free: buymeacoffee.com/fexingo