Avoid a surprise tax liability after your cost segregation study. Learn how property sales trigger unexpected bills years later.
Many real estate investors complete a cost segregation study to accelerate depreciation, but few realize the long-term tax consequences during an eventual property sale. This video explains the mechanics behind depreciation recapture and why failing to plan for this specific tax bill can erode your future profits.
If you own investment property or are considering accelerated depreciation strategies, understanding this financial trap is critical. I break down how the tax liability accumulates over time so you can adjust your exit strategy accordingly. Proper preparation now prevents a massive, unplanned tax bill later.
Subscribe for weekly real estate tax strategy breakdowns and comment below if you have questions about your current depreciation schedule.
CHAPTERS
00:00 Inroduction
02:44 Intro to Cost Segregation and Bonus Depreciation
04:06 An Unexpected Consequence
04:38 The Trap: Depreciation Recapture Explained
07:53 Why Bonus Depreciation Makes the Trap Bigger
09:05 The Three Plays to Manage the Exit
13:28 Should You Worry About This?
14:59 THE PLAYBOOK - Your Next Steps
Your host: David Wiener, "Mr. Cash Flow"
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