In this episode, host Toby Mathis, Esq., welcomes returning guest Chris Streit to break down the truth about cost segregation studies — when they work, when they don't, and who should consider one. Chris explains how cost seg studies accelerate depreciation by separating a property's components into shorter-lived assets, enabling large year-one deductions under bonus depreciation rules. They walk through a real-world example of a $500,000 duplex to illustrate potential tax savings, and discuss who qualifies to use those losses — including real estate professionals versus passive investors. The conversation also covers the best and worst property types for cost seg, how to use studies to offset rental income across a portfolio, and whether you can apply a study retroactively after a tax year has ended. Chris shares critical red flags to watch for when hiring a cost seg firm, including improper land valuation, lack of site visits, and insufficient substantiation — all of which can expose investors to serious IRS risk. Tune in for expert, no-nonsense guidance on one of real estate's most powerful — and misunderstood — tax strategies.
Highlights/Topics:- 00:00 Intro - Bonus depreciation and year one write-offs
- 04:01 Who should consider a cost seg study
- 06:06 Example 500K duplex breakdown
- 10:00 Real estate professional versus passive investors
- 14:19 Best versus worst property types for cost seg
- 18:25 Red flags and bad cost seg providers
- 22:08 Importance of site visits and proper substantiation
- 25:20 The biggest mistake real estate investors make
- 27:32 How to get started with a cost seg study
- Share this with business owners you know
CSA Partners (Chris Streit's company — cost segregation specialists): https://csap.com/
Request a FREE Cost Segregation Benefit Analysis: https://aba.link/594e87
Anderson Advisors Free Workshop (asset protection & business structure): https://aba.link/7gdd
Anderson Advisors https://andersonadvisors.com/
https://www.youtube.com/@TobyMathis
https://www.tiktok.com/@tobymathisesq
https://www.youtube.com/@ClintCoons
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