Name: SegWize DIY Cost Segregation Report
Brand: SegWize
Price: 550 USD
Availability: InStock

Question 1

What is cost segregation?

Accepted Answer

It's an IRS-accepted method of accelerating depreciation by re-classifying building components into shorter lives, allowing you to take larger tax deductions sooner.

Question 2

Why does SegWize focus on STRs/Airbnb?

Accepted Answer

Short-term rentals often miss out on depreciation benefits from the investments that hosts make in furniture, decorations, and other amenities, which are depreciable faster. SegWize optimizes specifically for STR owners by ensuring we capture all these costs to maximize your tax benefits, all in a DIY format.

Question 3

How fast will I get my report?

Accepted Answer

Within 1 business day—guaranteed. Our AI-powered system and streamlined process make this possible.

Question 4

Is DIY safe for tax compliance?

Accepted Answer

Yes. SegWize uses IRS-compliant standards and every report undergoes a human QA check before delivery.

Question 5

What documents do I need?

Accepted Answer

Closing statements, appraisals, invoices, and surveys are all helpful but not mandatory. Our AI can work with whatever documents you have, or you can use the platform without uploading any documents at all.

Question 6

How does AI streamline the process?

Accepted Answer

For documents you upload, the platform intelligently extracts data points that may be useful for your report. Further, the AI engine searches public sources such as government property records for relevant facts and uses satellite imagery to gather information concerning lawn and driveway size, garage type, swimming pools, fence length, etc.

Question 7

What types of properties does SegWize accept?

Accepted Answer

Currently, SegWize is designed for single-family rentals and townhomes/duplexes. While SegWize is tailor-made to handle the nuances of short-term rental properties, long-term traditional rentals are just fine, too! Also, please note that if you provide hotel-like services during stays such as recurring maid service, meal provision, or concierge services, your property may no longer be considered residential real estate. (Condominiums are next! Drop us a line at info@segwize.com if you're interested, and we'll send you a discount code when we roll out support for condos!)

Question 8

Am I eligible for the newly-reinstated 100% bonus depreciation?

Accepted Answer

Your property is eligible for 100% bonus depreciation if it was both purchased and placed in service after January 19, 2025.

Question 9

Will using cost segregation increase the chances of an IRS audit?

Accepted Answer

No, there's no evidence that using cost segregation increases audit probability. The IRS fully recognizes cost segregation as a legitimate tax planning strategy.

Question 10

Is cost segregation only for newly-acquired properties?

Accepted Answer

No, you can take advantage of a cost segregation strategy for a property placed in service in a prior tax year. Your CPA will simply need to file Form 3115, Application for Change in Accounting Method along with your tax return in order to retroactively realize the benefits.

Question 11

How much can I save?

Accepted Answer

Each situation is different so the answer differs based on the unique characteristics of your property. However, we generally see 10-25% of a property's value re-allocated to asset classifications that can depreciate much faster than the baseline 27.5 years for residential rental property. Further, you may be able to expense up to 100% of the re-allocated value in the first year, depending on your property's placed in service date.

Question 12

What is the short-term rental tax loophole?

Accepted Answer

Cost segregation is often most powerful when you're able to offset W-2 or other active income with the accelerated, upfront losses from a cost segregation study. Passive activity loss limitation rules typically prevent that unless you qualify for Real Estate Professional status. However, the STR loophole permits non-professional property owners with short-term rentals to qualify as well. The rules are complex, but for most STR investors, you can qualify if 1) the average duration of guest stays is 7 days or less, and 2) you materially participate, usually by either a) doing substantially all the work for the STR yourself, or b) participating for more 100 hours during the tax year and no less than any other individual. This loophole substantially increases the tax benefits of cost segregation for most STRs/Airbnb property owners. Please consult your CPA/tax advisor for details.

Question 13

Do you offer audit support?

Accepted Answer

Yes, we will engage with the IRS in the event of an audit to answer any and all questions about our process, model details and assumptions, and technology as it relates to our reports. We stand behind our report generation process 100% but please be aware that the reliability of the report as it relates to your property is dependent on the accuracy of your user inputs, so please take your time when entering your property details.