Hi Oliver, what the cost seg company is likely getting at is that if you do a cost seg on a property the losses generated by the cost seg will be passive losses and thus can only offset other passive income (as opposed to active income such as w2 income), unless you are somehow able to get shift the losses from the cost seg to qualify as active losses. There are two primary means to have the losses from the cost seg qualify as active losses. First, you can qualify as a real estate professional.
