Edward Griffith, a cost segregation expert with over 15 years of experience, shares his insights on maximizing ROI through in-person engineering studies. He explains how these detailed studies outperform software-only reports, potentially saving investors tens of thousands. Edward outlines properties that yield the highest ROI, the impact of study timing on tax strategy, and the intricacies of depreciable land improvements. He also discusses the comprehensive cost seg process and offers strategic advice for navigating bonus depreciation.
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insights INSIGHT
What Cost Segregation Actually Does
Cost segregation reclassifies building components from 27.5/39-year depreciation to 5- and 15-year buckets.
This accelerates deductions and can create large immediate tax benefits via bonus depreciation.
volunteer_activism ADVICE
Choose Properties With Site Improvements
Prioritize properties with significant site improvements like parking, landscaping, or specialized equipment.
Expect higher reclassification percentages (20–60%+) for houses, medical offices, mobile home/RV parks, and industrial sites.
insights INSIGHT
Warehouses Typically Yield Low Benefits
Warehouse shells offer minimal reclassification because they lack specialized interior components.
Low benefits (often 3–5%) rise only if substantial land improvements like parking exist.
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In this episode of the Tax Smart REI Podcast, Thomas Castelli and Nathan Sosa sit down with cost segregation expert Edward Griffith to break down what investors really need to know about cost segs—why engineering-driven, in-person studies deliver superior results, and how relying on cheap or software-only reports can quietly cost investors tens of thousands and increase audit risk.
You’ll learn:
- What a cost segregation study actually is, why it matters, and which properties generate the biggest ROI
- Why in-person, engineering-driven cost segregation consistently produces higher ROI and stronger IRS defensibility than software-only reports
- How the timing of a study (including pre- and post-renovation) affects your tax strategy and bonus depreciation opportunities
- What the full cost seg process looks like from start to finish, and how to ensure deductions actually show up on your tax return
To become a client, request a consultation from Hall CPA, PLLC at go.therealestatecpa.com/3KSEev6
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