Cost Segregation Recapture: The Tax Bill When You Sell Your Building

That cost segregation deduction is a loan, and you repay it the year you sell. The short-life pieces from the study can come back taxed as ordinary income, up to 37%. The building shell comes back at a maximum of 25%. This video shows you both rates on one building, so you can model the sale before you take the deduction. John Konrad, financial architect at Numeratus.us, walks one building from the study to the sale so you can run your real estate like the CFO of your own capital. Have a study on the table and no exit model? Bring the report. Book a call: https://numeratus.us Book a call to get a problem solver: https://www.numeratus.us/ Level up inside the membership community: https://numeratus.org/ Follow our X: https://x.com/Numeratus_us In this video: Why cost segregation moves a deduction instead of creating one The four terms: cost segregation, bonus depreciation, recapture, and the exit 100% bonus depreciation for property acquired and placed in service after January 19, 2025 Section 1245 recapture: short-life pieces taxed as ordinary income Unrecaptured Section 1250 gain: the shell at a 25% maximum 15-year land improvements and when bonus creates ordinary recapture One building, with illustration figures: $2M depreciable, $600K reclassified, $222K of year-one tax deferred Three exits: hold, sell, or a 1031 exchange What to ask the study firm before you sign The order to do it in: write the exit, get the list, build the repayment, then take the deduction The figures are an illustration, not a quote. This video is education, not legal or tax advice for your situation. #CostSegregation #DepreciationRecapture #Numeratus.US 00:00 Deduction Is A Loan 00:37 Cost Segregation Basics 01:46 Bonus Depreciation Rules 02:16 Recapture And Exit Defined 02:57 Two Recapture Rates 03:11 Shell 1250 At 25 03:52 Short Life 1245 Ordinary 05:10 Example With Numbers 06:58 Three Exit Paths 07:59 Questions To Ask Study 09:10 Order Of Operations 10:17 Wrap Up And Next Steps