Unlock six-figure tax deductions with cost segregation and bonus depreciation. Learn how these strategies work with CREI Partners.

If you're a high-income earner paying 35%, 40%, or even 50% in taxes, you need to understand two words: cost segregation.

In this episode, CREI Collin breaks down one of the most powerful tax strategies in real estate investing—cost segregation and bonus depreciation. You'll learn how these strategies can generate six-figure tax deductions in Year One of an investment, who benefits the most, and how to integrate them into your long-term tax strategy.

Whether you're a W-2 earner with passive income or a real estate professional, this episode will show you how to keep more of what you make.

In This Episode, You'll Learn:

• [00:00] Introduction – Why cost segregation is a game-changer for high-income earners
• [02:00] Depreciation Basics – How the IRS allows you to deduct the theoretical wear and tear on a building over 27.5 years
• [04:30] What is Cost Segregation? – How a cost seg study reclassifies building components into 5, 7, or 15-year property
• [07:15] Bonus Depreciation – How to take 100% of accelerated depreciation in Year One (and why it's phasing out)
• [10:00] Real-World Example – A $100K investment generating $20K-$30K in Year One depreciation
• [12:30] Who Benefits Most? – High-income W-2 earners with passive income, real estate professionals, and diversified investors
• [14:45] Look-Back Cost Seg Studies – How to capture missed depreciation from prior years
• [16:15] Working with Your CPA – Questions to ask before investing in a deal with cost segregation
• [18:00] Recap & Action Steps – How to maximize tax benefits with cost segregation

Key Takeaways:

✅ Cost segregation accelerates depreciation by reclassifying building components into shorter schedules (5, 7, or 15 years)

✅ Bonus depreciation is phasing out: 60% (2024), 40% (2025), 20% (2026), 0% (2027)—timing matters

✅ High-income earners with passive income can use cost seg losses to offset that income tax-free

✅ Look-back studies let you retroactively capture missed depreciation from prior years

✅ Work with a Real Estate CPA to integrate cost seg into your long-term tax strategy—don't just chase deductions

Resources Mentioned:

Ready to start leveraging cost segregation and building a tax-efficient portfolio? Schedule a free consultation with CREI Partners: https://calendly.com/shelbi-creipartners/30min

Disclaimer:

This podcast is for educational and informational purposes only and does not constitute investment, tax, or legal advice. Always consult with your CPA, attorney, and financial advisor before making any investment or tax decisions.

• (00:00:01) - Building Passive Income
• (00:01:25) - Cost Segregation and Bonus Depreciation
• (00:07:38) - Cost segregation and Bonus Depreciation