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Avoid This 1031 Exchange Mistake That Kills Your Tax Benefit

Learn how to avoid the common 1031 exchange mistake of miscalculating excess basis for cost segregation. Expert Brian Kiczula of CostSegRx explains the correct method to maximize depreciation without jeopardizing your tax deferral.

This news matters because real estate investors often overlook the precise calculation of excess basis when combining a 1031 exchange with cost segregation. Missteps can nullify the tax deferral advantage, leading to unexpected capital gains taxes. Understanding this nuance helps investors maximize depreciation benefits while staying compliant, potentially saving thousands in taxes. Proper collaboration with CPAs and cost segregation experts before closing is essential to avoid costly errors.