Accelerating depreciation on rental property, when it works and when it doesn't.
What a study does
A cost segregation study reclassifies building components into shorter recovery periods, front-loading deductions.
Passive loss limits
Without real estate professional status, accelerated losses may be suspended, modeling first is essential.
Plan the exit
Depreciation recapture at sale should be part of the analysis from day one.
This article is general information, not tax advice. Every situation is different. Talk to your advisor before acting.
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