Yes, the one drawback to segmented depreciation is, when you sell the property you have to recapture any depreciation taken as ordinary income. You are losing out on having that part of the gain taxed as capital gain, which the rates are typically lower than ordinary income tax rates. The advantage to you, is you are taking a deduction for the cost of the renovations sooner on your tax return and reducing the amount of tax you need to pay now.
No, you are not opening up yourself to an audit from the IRS.
@wrangler18
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