Maximizing tax savings is a crucial part of real estate investing, and cost segregation is one strategy that can make a big difference. In this episode of Zen and the Art of Real Estate Investing, Jonathan sits down with Erik Oliver, Vice President of National Accounts at Cost Segregation Authority, to break down how investors can use this tax strategy to accelerate depreciation and reduce their tax burden.
Jonathan and Erik Oliver dive into how cost segregation works, who benefits most, and why hiring the right accountant is critical. Erik shares real-world examples, including an office building case study, and explains audit considerations, the best asset class for cost segregation, and why having a solid tax team is essential. He also touches on his experience with micro apartments and opportunity zones as solutions for affordable housing and how cost segregation plays a role in syndication investments.
You’ll hear more about:
- Cost segregation reclassifies assets within a property to accelerate the depreciation schedule.
- You can apply cost segregation to any revenue-generating property.
- Many investors are unaware of cost segregation as a tax-saving strategy or assume it’s only for larger institutional properties.
- Working with a cost segregation specialist is the best way to get the maximum impact on your taxes.
If you want to learn more about Zen and the Art of Real Estate Investing Podcast, check out https://zenandtheartofrealestateinvesting.com/podcast/220/.