[Ian]

It doesn’t make sense to do unless you have lots of income to offset. It’s kind of like the difference between taking a standardized tax deductions vs an itemized deduction.

When its itemized it can be more specific and you can find more ways to take deductions, but the overhead/complexity/cost of it doesn’t make sense to take on unless you have an income threshold that would justify it.

Lots of people use a bar of about 200k-300k of w-2 income as being the beginning of the threshold where cost segregation might make sense.

[Shawn]

The study costs money and you may not be able to utilize the additional depreciation due to passive activity loss rules.

It also lowers deductions in later years.

This strategy is best used by real estate professionals with high levels of ordinary income in the current year.

[Author]

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