Cost segregation on an investment property

Forum|Forum|3 years ago
January 30, 2023
1 reply
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I bought an investment property in November 2022 but haven't rented it out yet as it's still being renovated. I dont need the write offs this year and would prefer to use the write offs in 2023. Would i be able to cost seg the year after the property is purchased?

GeorgeM777

You start taking depreciation deductions not when you buy a rental property and begin renovations, but when you begin using the property to generate rental income. The IRS refers to this as putting the property "in service." Therefore, if your renovations are complete in 2023, and you make your rental property available for rent in 2023, then you can begin taking depreciation.

Cost segregation requires an analysis beyond which we can provide, and therefore, it requires a consultation with a personal tax professional.

@pbmunkey

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