Turn Your Real Estate into a Tax-Saving Machine with Cost Segregation - Jonathan Frizzell

Episode Summary

In this powerhouse reunion episode, Nicholas Cook sits down again with cost segregation legend Jonathan Frizzell (Kevel & Kevel) to break down the brand-new tax legislation (the “Big Beautiful Bill”) that just made 100% bonus depreciation permanent starting January 19, 2025 — and why every rental property investor needs to act on it now.

Jonathan explains in plain English how cost segregation accelerates depreciation (reclassifying assets into 5- and 15-year lives instead of 27.5 or 39 years), how the new law supercharges that strategy, and real-world examples of turning $1M of basis into $70K–$100K+ of Year-1 tax savings — or more.

If you own rentals, multifamily, self-storage, short-term rentals, or commercial property, this episode is your roadmap to legally lower taxes, boost cash flow, and retire faster.

Key Timestamps

00:00 – Intro & Jonathan’s 19-year cost seg journey
03:20 – Cost segregation explained simply (5-, 15-, 27.5-, 39-year property)
06:45 – Typical reclassification percentages by property type (multifamily 27-35%, self-storage 30-45%+)
09:10 – Rule-of-thumb savings: ~7-10% of basis in Year-1 cash back
12:30 – How a cost segregation study actually works (on-site visits, engineers, hundreds of line items)
18:40 – Bonus depreciation history & why the new “Big Beautiful Bill” is a game-changer
22:15 – 100% bonus depreciation is now PERMANENT (retroactive to acquisitions after Jan 19, 2025)
28:50 – Look-back (catch-up) studies on properties you already own
32:10 – Cost segregation as an asset-management tool (retire old roofs/HVAC, partial asset dispositions)
38:20 – Using cost seg in estate planning (step-up in basis + no recapture at death)
44:30 – Lightning round with Jonathan (favorite steak, COVID lessons, travel bucket list)

Key Takeaways & Action Items

• 100% bonus depreciation is now permanent law – no more phase-out (80/60/40/20)
• Any property placed in service after January 19, 2025 qualifies for 100% write-off on 5- & 15-year assets
• Typical study cost: $5,000–$10,000 and almost always pays for itself many times over
• Don’t forget “look-back” studies on properties you’ve owned for years — huge missed opportunity
• Soft costs (architect, engineering, permits) get the exact same accelerated treatment as hard costs
• Cost seg + bonus depreciation = massive cash flow to pay down debt, buy more properties, or retire earlier
• Estate-planning bonus: keep cost-segging until you pass — heirs get stepped-up basis with zero depreciation recapture

Guest Bio – Jonathan Frizzell

Jonathan is a principal at Kevel & Kevel, one of the longest-standing boutique cost segregation firms in the U.S. With 19 years and thousands of studies under his belt, he works nationwide with single-family investors, multifamily syndicators, self-storage owners, and commercial landlords to legally minimize taxes through accelerated depreciation and bonus depreciation strategies.

Connect with Jonathan

Email: [e-mail]
Website: kevel.com

Resources Mentioned

• Kevel & Kevel – kevel.com
• SleepSound Property Management – sleepsoundpm.com
• TimeShifter jet-lag app (Nicholas’s travel hack)