Maximize Your Real Estate Savings with Cost Segregation: 3 Types of Income Explained


Looking for a Cost Seg Study for your property?

Today’s topic: The 3 types of income cost segregation can offset — and how smart investors use it to unlock serious tax savings.

Most people know cost segregation can lower taxes on rental income. But with the right setup, it can also help offset W-2 income and even capital gains.

In this post, we break down:

  • How REPS turns passive losses into active income offsets
  • A step-by-step rental income example showing $0 taxes with bonus depreciation
  • How to carry forward unused losses to future years
  • The impact depreciation has on capital gains — and how to use a “lazy 1031” to offset them
  • Why accelerating depreciation matters more in the early years of ownership

“With cost segregation, you're not just deferring taxes — you're controlling the timing, creating cash flow, and investing on your terms.”

Check out the full article to see how this strategy can work for you.


Is Cost Segregation Right for You?

Not every property or investor will benefit equally from cost segregation. Large-scale properties with significant components (think commercial real estate or multifamily housing) often see the biggest benefits. Partnering with an experienced CPA or tax advisor is crucial to ensure this strategy aligns with your overall financial goals.

Cost segregation isn't just a tax-saving strategy—it’s a tool to build wealth. If you’re ready to maximize your real estate investment returns, understanding and leveraging this strategy could make all the difference.

We built a free calculator that you can use to estimate your savings.

Start planning your tax strategy today—schedule a consultation with Maven Cost Segregation.

What's New With Me?

Last week, I was a guest on the BiggerPockets Rookie Show podcast with Ashley Kehr & Tony J. Robinson!

I've always admired BP so it was pretty special and a ton of fun chatting with Ashley and Tony!

Stay tuned for when the episode is released!

Looking to Hire a Virtual Assistant?

Thank you for reading. Please reach out and let me know what resonated with you. I read every email!

Cheers,

Sean

CPA | Founder of Maven Cost Seg, Maven Success , and Maven Equities

P.S. Forwarded this email? Click here to make sure you get added to the weekly distribution list!

113 Cherry St #92768, Seattle, WA 98104-2205
Unsubscribe · Preferences

Hi, I'm Sean!

Every week I share tips on real estate taxes, cost segregation, and navigating the entrepreneurship journey. Enter your email below to sign up for the Maven Newsletter!

Read more from Hi, I'm Sean!

Big news out of D.C. over the holiday weekend: The President signed the "One Big Beautiful Bill" on July 4th, a bill that brings back 100% bonus depreciation. I’m excited about what this means for real estate investors: The ability to fully deduct short-life assets (like flooring, appliances, and site improvements) in year one, instead of spreading those deductions over decades. More cash in your pocket today to reinvest, de-risk, or take on new deals. A renewed opportunity to leverage cost...

Check out my episode on the Ground Breakers Podcast! Looking for a Cost Seg Study for your property? Book a call with me to discuss! Today’s topic: 10 depreciation hacks most investors miss (that could save you thousands) Most real estate investors understand the basics of depreciation. But the real savings? They’re often hiding in overlooked details—like removable buildouts, dedicated electrical, or tenant-specific improvements. In this article, we break down: Why modular walls and...

Check out my episode on the Real Estate Pros Podcast! Looking for a Cost Seg Study for your property? Book a call with me to discuss! Today’s topic: The 2025 IRS rule that could change your cost segregation study. For years, many cost seg firms have accelerated kitchen cabinets, countertops, and sinks into 5-year property. But new 2025 IRS guidance makes it clear: these are structural components and must be depreciated over 27.5 or 39 years. In this article, we break down: The exact changes...