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The Nick Huber Show

Ep 145: The 5 Levers of Bonus Depreciation

May 22, 2024
Learn about the framework for Cost Seg and bonus depreciation in real estate. Discover how to maximize tax savings and explore the five levers of bonus depreciation for property investments. Uncover the factors influencing tax leverage and how to utilize bonus depreciation for long-term benefits.
13:40

Podcast summary created with Snipd AI

Quick takeaways

  • Bonus depreciation accelerates tax savings on real estate assets upfront.
  • Optimizing tax benefits requires assessing factors like leverage, tax rates, and holding periods.

Deep dives

Tax Advantages of Real Estate: Leveraging Bonus Depreciation and Cost Segregation

Real estate offers significant tax advantages through strategies like bonus depreciation and cost segregation. Bonus depreciation allows investors to accelerate depreciation on assets, creating substantial tax savings upfront. Cost segregation involves identifying shorter-lived property components for faster depreciation, maximizing tax deductions. Understanding the interplay of factors like property value, useful life, leverage, and tax rates is crucial in determining the viability of these tax-saving mechanisms.

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