How This Landlord Uses the Cost Segregation Strategy to Save Thousands

In Episode 50, Lucas and Luna break down the cost segregation strategy — a tax technique that lets rental property owners accelerate depreciation and boost cash flow in the first year. They walk through a real-world example: a $750,000 fourplex where a cost segregation study reclassifies $150,000 of the building's value into five- and seven-year property categories, generating an extra $30,000 in depreciation deductions in year one. Lucas explains why this works under the current tax code, how it interacts with bonus depreciation, and the key threshold — properties purchased for $1 million or less can use the IRS's 'safe harbor' method without a full engineering study. Luna asks the practical questions: What does a study cost? Does it trigger a recapture tax when you sell? And can you use it on a property you've owned for years? They also touch on how this strategy pairs with a 1031 exchange to defer taxes even further. If you own rental real estate and haven't run a cost segregation analysis, this episode might save you thousands come tax season. #CostSegregation #RealEstateInvesting #TaxStrategy #Depreciation #RentalProperty #CashFlow #BonusDepreciation #IRS #TaxDeduction #RealEstateTaxes #FexingoBusiness #BusinessPodcast #Finance #PropertyInvesting #Landlord #TaxSaving #WealthBuilding #RealEstateStrategy Keep every episode free: buymeacoffee.com/fexingo