How Cost Segregation Boosts Rental Cash Flow

In this episode, Lucas and Luna explore the cost segregation study — a tax strategy that lets landlords accelerate depreciation on a rental property to save thousands in taxes and boost cash flow. Using a real-world example of a 10-unit apartment building purchased in June 2025, they walk through how the study reclassified $120,000 in building components into 5- and 7-year assets, generating a first-year tax savings of $28,500. Lucas explains the mechanics, the upfront investment ($3,000 for the study), and why the strategy works best on properties over $500,000. Luna challenges the timing and asks about recapture upon sale. They also touch on recent IRS guidance and how bonus depreciation under current tax law makes cost segregation especially powerful in 2026. A practical, numbers-heavy conversation for any landlord looking to reduce their tax bill and improve cash flow without raising rents. #CostSegregation #TaxStrategy #RentalIncome #Depreciation #RealEstateInvesting #CashFlow #LandlordTips #BonusDepreciation #TaxSavings #MultiFamily #ApartmentInvesting #IRS #Finance #RealEstateWealth #FexingoBusiness #BusinessPodcast #TaxPlanning #PropertyManagement Keep every episode free: buymeacoffee.com/fexingo