Understanding Real Estate Taxes and Cost Segregation

In this chapter, the hosts introduce the topic of taxes and how they impact real estate investors. They discuss the importance of real estate tax knowledge in lowering tax bills and introduce the concept of cost segregation. They explain how cost segregation allows investors to create bonus depreciation, lower their tax bill, and continue compounding their real estate investments.

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What’s the key to paying fewer taxes? A cost segregation study. Never heard of it? Most real estate investors haven’t, but we’re about to unlock a world of tax-free income earning using this specific tool. If you’ve wondered how the wealthy pay such few taxes while owning million-dollar-producing real estate, this is how. In today’s episode, you’ll learn how to use cost segregation, too, so you can keep more money in your pocket.

Taxes aren’t everyone’s favorite subject, but paying fewer taxes? You can probably get behind that. We’ve brought on CPA and CFP Mitchell Baldridge to explain how he helps real estate investors, large and small, delete their taxable income and build their real estate portfolios faster. Our own Rob Abasolo uses Mitchell’s team to cut his taxes down by more than six figures!

In this episode, we’ll explain what cost segregation is, why so many top real estate investors use it to lower their taxes, when you can (and can’t) use it on your properties, the short-term rental tax “loophole” to take advantage of, AND what happens when you do it wrong.

In This Episode We Cover:

How to wipe out your income taxes using cost segregation studies

Bonus depreciation and writing off your property faster than before

Using real estate losses to lower your W2 or business income

The short-term rental “loophole” ANYONE can use to reduce their taxable income

Carrying over losses and why top real estate investors will NEVER stop buying property

Caveats and pitfalls of cost segregation and when it can come back to bite you

And So Much More!

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