Cost segregation is a hot topic in real estate investing, but understanding how it works can lead to big tax savings. In this episode of Zen and the Art of Real Estate Investing, Jonathan interviews Sean Graham, a real estate investor, registered CPA, and founder of Maven Cost Seg. Sean also leads Maven Equities, combining his real estate and accounting expertise to help investors maximize their financial outcomes.
Jonathan and Sean explore Sean’s journey into real estate, starting with a house hack in Chicago that eventually led to a focus on self-storage investments. While wholesaling wasn’t his niche, Sean found success in self-storage and explains how location impacts property operations, his evolving deal-finding strategies, and the financial benefits of this asset class. He also dives into cost segregation, the types of assets it works best for, and how it can save investors money. Sean offers insights on tailoring cost segregation strategies to different asset classes and clarifies what it takes to qualify as an active real estate professional from the IRS’s perspective. He offers advice on building relationships with tax professionals to maximize your financial outcomes.
Jonathan and Sean explore the following concepts more in-depth:
- Cost segregation is a tax strategy that allows real estate investors to accelerate the depreciation of their investments.
- Various asset classes qualify for cost segregation, and the more complex the property, the bigger the potential is for cost segregation benefits.
- If you’re going to use cost segregation, conduct a study as soon as possible after taking possession of a property.
- You need a tax professional who understands cost segregation to take full advantage of its benefits.
Cost segregation is a great way to use the tax code to your advantage, and Sean Graham wants you to know how to benefit from it.
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