Join John Skabelund as he explores cost segregation studies, accelerated depreciation, tax benefits, and what you need to know before you begin your real estate journey with his guest, Joseph Viery.
USTAGI was founded by Joseph Viery with the goal of providing quality cost segregation studies. As a Cost Segregation Professional, CSP, he has helped property owners defer or eliminate millions of dollars in income taxes by leveraging IRS compliant cost segregation studies. Since becoming a CSP in 2007, Joseph has performed thousands of cost segregation studies for clients in various industries ranging from $500,000,000 commercial properties to $50,000 single family residences. He regularly presents at workshops nationally and is a frequent guest on industry podcasts. He has a natural ability to turn complex sets of guidelines into easy-to-understand topics.
In this episode, learn how you can avoid making common mistakes, gain insight on real estate investing and appraisals, and how you can begin taking advantage of these benefits now.
Podcast Overview:
Coming up with your next investment move? If you want to invest in real estate smarter, you need to hear what John Skabelund shared on the WealthAbility for CPAs podcast with Tom Wheelwright.
John lays out how a strategic legal structure can not only protect your real estate portfolio, but allow you to scale it more efficiently. If you’re just starting out or you’re working to optimize your existing investments, this conversation brings clarity to one of the most overlooked aspects of building long-term real estate wealth.
What You’ll Learn in This Episode:
What Is Depreciation & Why It Matters
Joe explains the IRS’s concept of depreciation, the idea that buildings wear out over time, and how investors can expense a property’s value across its useful life. Depreciation helps offset taxable income, reducing your overall tax bill.
“Real estate is a great investment because it’s tax-friendly. You can offset income and keep more money in your pocket.” — Joe Viery
Cost Segregation 101
Cost segregation allows you to break down a building’s components (like flooring, cabinets, landscaping) and accelerate their depreciation timelines.
- 5- & 7-Year Property: Interior items such as carpet, vinyl, window coverings, and countertops.
- 15-Year Property: Exterior items like concrete work, fencing, landscaping, and pools.
- 27.5- or 39-Year Property: Structural components like walls, HVAC, and roofs.
Without cost segregation, you’d depreciate all of this over decades, but with it, you can invest in real estate smarter by front-loading those deductions and improving cash flow.
Example: Depreciation in Action
Bought a property for $1M with $300K allocated to land (not depreciable)? That leaves $700K of depreciable basis. A cost segregation study might accelerate 25–30%, or about $175K, into the first year, potentially saving you $70K in taxes if you’re in a 40% tax bracket.
As of 2024, bonus depreciation is set at 60%, allowing investors to write off most short-life property in the first year. Joe predicts we may return to 100% bonus depreciation under future tax legislation.
“Even with reduced bonus depreciation, you’re still getting the benefit, it just stretches over a few years.” — Joe Viery
Cost Segregation: Is It Worth It?
Joe shares his general rule of thumb: For every $1,000 spent on a study, investors should save $10,000 or more. His firm offers modeling studies for as little as $675–$725, depending on whether it’s for the current year or a look-back study.
Ideal candidates include:
- Real estate held for 2+ years
- New acquisitions not part of a full-value 1031 exchange
- Income-producing properties (including Airbnbs)
“If you have a whole bevy of losses and you don’t need depreciation, don’t do it… Wait until you need me.” — Joe Viery
When Not to Do Cost Seg
Cost segregation isn’t right for everyone. Joe advises against it if:
- You’ll sell the property within 2 years
- You have massive passive losses already
- You did a full-value 1031 exchange with no remaining depreciation value
Audit-Proofing Your Strategy
Joe and his team follow the IRS Audit Technique Guidelines (ATG) to ensure every study meets or exceeds compliance standards. He recommends asking any provider for a sample redacted report to ensure detail and quality.
“If the IRS has questions, I answer them, at no extra charge.” — Joe Viery
Bonus Tip: Write-Offs from Renovations
Did you replace the carpet, appliances, or HVAC? Joe’s studies itemize each building component so that when you throw something away, you can write off its remaining value, a powerful, often-missed deduction.
Who Should Listen to this Podcast?
This episode is a must for:
- Real estate investors at any stage of growth
- CPAs advising clients on real estate structures
- Entrepreneurs diversifying into property
- Anyone looking to invest in real estate smarter
Listen to the Full Episode
Want the full conversation? Watch the video above and discover how to build real estate wealth on a solid legal foundation.
About John Skabelund
John is the founder of Skabelund PLLC, a law firm dedicated to asset protection, estate planning, and helping business owners and investors secure what matters most. He has advised clients with estates ranging from $100k to over $100 million, and his approach is built on clarity, strategy, and long-term thinking. Schedule a time to talk more about your asset protection needs.
Connect with Joe Viery
Visit USTAGI (US Tax Advisors Group, Inc.) to learn more or request a no-cost estimate.