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
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Resources:

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/

Toby Mathis YouTube

https://www.youtube.com/@TobyMathis

Toby Mathis TikTok

https://www.tiktok.com/@tobymathisesq

Clint Coons YouTube

https://www.youtube.com/@ClintCoons

How To Do A Cost Segregation Study When It Saves You Money and When It Doesn’t