The Hotel Investor Playbook Cost Segregation Made Simple: Unlock Massive Tax Savings in Real Estate | Brian Bigham E20
Mar 4, 2025
In this engaging talk, Brian Bigham, the Cost Seg Cowboy and Vice President at Madison Specs, shares his expertise on tax savings through cost segregation. He simplifies complex strategies, using the fun 'Pizza Method' to explain how real estate investors can accelerate depreciation and drastically reduce their tax bills. Brian also reveals advanced loopholes to take advantage of when selling properties and emphasizes the importance of professional guidance to navigate these financial intricacies. Perfect for those looking to keep more of their hard-earned money!
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Depreciation Is Foundation Of Property Tax Strategy
- Depreciation is a tax loss applied to physical assets of a property and excludes land.
- Depreciable basis equals purchase price minus land and is spread over standard tax lives unless accelerated.
Reclassify Assets To Accelerate Depreciation
- Use cost segregation to reclassify components into shorter depreciation lives like 5- and 15-year buckets.
- Accelerate those losses to the early years to offset rental income and keep more cash today.
Pizza Method Makes Cost Seg Intuitive
- The "pizza method" visualizes splitting a property's components and accelerating fast-wearing items into short lives.
- This captures much of the depreciation earlier while leaving structural items on longer lives.