No. Cost Seg can be beneficial regardless. It is however, critical to distinguish between passive income, which comes from investments or rental properties, and active income, which is obtained from employment or entrepreneurial endeavors. Losses from a cost segregation cannot be used to reduce your W2 income unless you work in real estate.
On the other hand, revenue from short-term rentals is typically regarded as a passive source of income. However, there might be a chance to deduct this passive income from the taxpayer's active income if they actively manage and care for the rental property. To find out if you qualify for such changes, it is best to speak with your tax expert.