5 Cost Segregation Mistakes That Trigger IRS Audits

In this video, Toby Mathis breaks down why most cost segregation studies fail and what real estate investors must do to protect their tax deductions. Request a FREE Cost Segregation Benefit Analysis 👉 https://aba.link/vsh Learn more about CSA Partners https://csap.com/ WATCH More Videos With Chris 4 Big Changes For Real Estate Investors Under Trump’s Big Beautiful Bill (2 Are BAD!) https://youtu.be/ZKRyX4cW5pk Stop Overpaying Depreciation Recapture: The §1245 Move They Skip https://youtu.be/DBbT2jVG3Js Joined by Chris Streit of CSA Partners, a cost segregation firm that has completed tens of thousands of studies, Toby dives into the real-world mistakes the IRS is actively targeting. If you’ve heard about cost segregation on TikTok or from an accountant and think it’s a guaranteed win, this conversation explains why that assumption can be dangerous without the right strategy and documentation in place. The discussion starts with a critical truth most investors overlook: a cost segregation deduction is only as good as your ability to legally use it. Toby and Chris explain the difference between calculating depreciation and qualifying to apply those losses against active income. They cover why real estate professional status and the short-term rental loophole must be rock-solid, fully documented, and aligned with IRS rules or your depreciation can be disallowed in an audit. Would you like to learn more about protecting your assets and minimizing taxes? Schedule a free consultation here: https://aba.link/c7f37d Show Notes: 0:00 Intro 1:06 #1 Qualify to use the loss: REPS vs STR loophole + documentation/material participation 2:38 #2 Land value allocation: IRS focus, apportionment method, assessor ratios vs appraisal 5:42 Red flags: “quick & easy” 80/20 shortcuts and audit exposure (esp. high land-value areas) 9:05 #3 Engineered study: site visit (in-person or remote) + substantiation 10:45 #4 Costing method 12:40 Why instant/automated reports fail 13:39 New construction vs purchase/remodel: 15:43 #5 Accessibility: support during an audit + burden of proof is on the taxpayer 17:31 Value vs price: cheap reports = smaller deductions + higher risk 18:59 Why Toby recommends CSA + free benefit analysis 19:50 Free defensible land value allocation offer + where to get it 20:25 Outro --------------------------------------------------------------------------------------------------------- FREE TAX & ASSET PROTECTION WORKSHOP Register for an upcoming workshop today if you want to protect your business and personal assets from snoopy lawyers and creditors. Save Your Seat: https://aba.link/955066 ~~~~ FOLLOW US: Instagram: https://aba.link/instagram Facebook: https://aba.link/facebook Twitter: https://aba.link/twitter LinkedIn: https://aba.link/linkedin TikTok: https://www.tiktok.com/@tobymathisesq ~~~~ CONTACT US Phone: 800.706.4741 Email: [email protected] Fax: 702.664.0545 ABOUT TOBY MATHIS Toby Mathis, Esq. is the best-selling author of Infinity Investing: How the Rich Get Richer And How You Can Do The Same. Toby is a tax attorney and founded Anderson Business Advisors, one of the most successful law, tax, and estate planning companies in the United States. Learn more at https://aba.link/tobyaba --------------------------------------------------------------------------------------------------------- WARNING: I will NEVER ask you to contact me through YouTube comments, telegram, or WhatsApp. I have a checkmark next to my name, and my comment will be highlighted. Fake accounts do not have that. Please be aware of fake accounts trying to scam you using my name and picture. The information provided in this video should not be construed or relied on as financial, investment, or legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice. #realestatetips #costsegregation #taxstrategy