#  @recostseg Melanie Baldridge Melanie Baldridge posts on X about money, cash flow, if you, investment the most. They currently have [------] followers and [---] posts still getting attention that total [-----] engagements in the last [--] hours. ### Engagements: [-----] [#](/creator/twitter::1541922797122977794/interactions)  - [--] Week [------] +246% - [--] Month [------] +165% - [--] Months [-------] +163% - [--] Year [-------] -89% ### Mentions: [--] [#](/creator/twitter::1541922797122977794/posts_active)  - [--] Week [--] +100% - [--] Month [--] +67% - [--] Months [--] +92% - [--] Year [---] -10% ### Followers: [------] [#](/creator/twitter::1541922797122977794/followers)  - [--] Week [------] -0.03% - [--] Month [------] -0.06% - [--] Months [------] -0.90% - [--] Year [------] -1.20% ### CreatorRank: undefined [#](/creator/twitter::1541922797122977794/influencer_rank)  ### Social Influence **Social category influence** [finance](/list/finance) [countries](/list/countries) **Social topic influence** [money](/topic/money), [cash flow](/topic/cash-flow), [if you](/topic/if-you), [investment](/topic/investment), [savings](/topic/savings), [debt](/topic/debt), [business](/topic/business), [compound](/topic/compound), [$1m](/topic/$1m), [playbook](/topic/playbook) **Top assets mentioned** [Gains (GAINS)](/topic/gains) ### Top Social Posts Top posts by engagements in the last [--] hours "I know a bunch of real estate investors who make $1-2 million a year in free cashflow who haven't paid income taxes in years. Zero tax liability. They buy a building or two every year do a cost seg bonus depreciate a big chunk shield their income. America is wonderful 🗽" [X Link](https://x.com/recostseg/status/1674143635359629312) 2023-06-28T19:52Z 48.1K followers, [---] engagements "Site improvements are some of the best cost segregation items on our reports. I LOVE earthwork stormwater landscaping hardscaping pools decks patios hot tubs fire places outdoor kitchens. At least those $$$ line items will net you a huge up front savings" [X Link](https://x.com/recostseg/status/1675256194963853314) 2023-07-01T21:43Z 48.1K followers, [--] engagements "There is no other asset class like REAL ESTATE Any normal person can: - buy with leverage - add value and watch it appreciate - depreciate basis - cash flow - cash out refi - [----] and defer gains - step up basis at death - do it all over again" [X Link](https://x.com/recostseg/status/1676395029286518789) 2023-07-05T00:58Z 51.3K followers, 24.6K engagements "One of the most common questions we get from RE investors - What is the best asset class for cost seg and bonus The answer - Dont let the tax tail wag the dog Find the best deals you can that are in your wheelhouse and execute. The other answer is gas stations ⛽" [X Link](https://x.com/recostseg/status/1677799471307173888) 2023-07-13T16:14Z 48.2K followers, 22.4K engagements "The STR TLDR: [--]. Your STR must have [--] night average stay to qualify as a business rather than passive RE. [--]. You must materially participate in the business - You spent [---] Hours in the business - or - - You spent [---] hours and more than anyone else in the business" [X Link](https://x.com/recostseg/status/1679283225900773381) 2023-07-13T01:14Z 48.2K followers, 206.9K engagements "Real estate investors developers and operators can make millions a year and pay almost nothing in TAXES by utilizing a loophole called Bonus Depreciation. A thread on how it works:" [X Link](https://x.com/anyuser/status/1686442195279069184) 2023-08-01T18:22Z 50.6K followers, 680.3K engagements "One of my clients makes millions a year and pays virtually no income taxes. He is a real estate investor and owns a small business on the side that prints money. Cashflow from business + paper losses from real estate investment and cost segregation = all cash and no tax" [X Link](https://x.com/recostseg/status/1688902389300899840) 2023-08-08T13:18Z 48.1K followers, 86.3K engagements "RE Cost Seg went over $2 million in total revenue today. I launched this company in June of [----]. Very thankful for this online community and your support I'm excited to save you all a lot of money over the years and I don't take this responsibility lightly. THANK YOU" [X Link](https://x.com/recostseg/status/1689688506338099200) 2023-08-10T17:21Z 48.1K followers, 67.5K engagements "We've done a cost segregation study in every state except South Dakota. We're offering a free study to one of the real estate investors who replies here Anybody know one Tag them" [X Link](https://x.com/recostseg/status/1690737183869505536) 2023-08-13T14:48Z 40.3K followers, 28.2K engagements "A common question we receive from clients is How much will I save in taxes this year if I buy real estate Here is a framework to think about how buying properties create the most tax efficiency for you. THE [--] LEVERS OF DEPRECIATION" [X Link](https://x.com/recostseg/status/1691488391827955712) 2023-08-15T16:33Z 48.1K followers, 292.1K engagements "Lever [--] - % of Land One of the components of a property is land. Land is NOT DEDUCTIBLE so low value land properties mean more tax deduction. A value of your overall purchase will be assigned to the land or lot. You receive no near-term tax benefits for buying land" [X Link](https://x.com/recostseg/status/1691488394529079296) 2023-08-15T16:33Z 48.1K followers, 14.6K engagements "Lever [--] (Bonus) - % Payback Ratio Ultimately how much you save vs. how much you pay matters. We pride ourselves @recostseg at being the best value on the market. We use virtual site visits on 90%+ of our projects to save time and money and our engineers produce great work" [X Link](https://x.com/recostseg/status/1691488419795603456) 2023-08-15T16:34Z 48.1K followers, [----] engagements "Caveat - Talk to your CPA before you purchase a cost seg study. You need to have a way to monetize your losses through [--]. Being a Real Estate Pro [--]. Having Passive income you can offset [--]. Using the STR (or carwash etc.) Loophole Don't cost seg if you can't use the losses" [X Link](https://x.com/recostseg/status/1691488422463221760) 2023-08-15T16:34Z 48.2K followers, [----] engagements "That's a wrap - Let us know if you have any questions. Reach out if you have bought any property since [----] that might be eligible for a cost seg" [X Link](https://x.com/recostseg/status/1691488425051095041) 2023-08-15T16:34Z 48.1K followers, 10.5K engagements "REMINDER - @sweatystartup and @baldridgecpa are co-hosting a FREE real estate tax WEBINAR August [--]. We'll cover the tax strategies RE investors use to SAVE Topics: Cost segregation RE Pro status OZs 1031s Step-up in basis 45L Credits Sign up here:" [X Link](https://x.com/recostseg/status/1691638395145990401) 2023-08-16T02:29Z 48.1K followers, 28.5K engagements "A client of mine: Passively owns a biz generating $1m+ in profit for him each year. Owns and buys real estate every year and gets a big chunk of bonus depreciation. Pays NOTHING in taxes each year. The ability to compound wealth this way over time is mind blowing" [X Link](https://x.com/recostseg/status/1694078494760734996) 2023-08-22T20:06Z 48.1K followers, 268.6K engagements "@CicmilJovan He's a real estate professional (active real estate investor) and the depreciation from the assets offsets his cashflow gains" [X Link](https://x.com/recostseg/status/1694079705169744249) 2023-08-22T20:10Z 48.1K followers, 15.7K engagements "A client bought a ranch (Short Term Rental) in [----] for $1.7 million. He never cost segregated or took bonus depreciation We found over $347k of bonus (year 1) depreciation. 20% of his purchase price We helped file Form [----] and took a $347k deduction THIS YEAR" [X Link](https://x.com/recostseg/status/1699836873211015430) 2023-09-07T17:27Z 48.1K followers, 212.1K engagements "The tax lifecycle of real estate: [--]. Buy with leverage [--]. Cost segregate and depreciate initial capital in [--]. Stabilize and borrow tax free against asset [--]. Enjoy low tax cashflow year over year [--]. [----] exchange into larger asset repeat [--]. Die and step up basis [--]. Heirs repeat" [X Link](https://x.com/recostseg/status/1701264778201563427) 2023-09-11T16:01Z 48.1K followers, 253.9K engagements "Most great businesses end up as real estate businesses - The playbook of our wealthiest clients: Cashflow from business - Invest in real estate - Depreciation & cost seg shields small biz income - End up with a lot of cash and very little tax" [X Link](https://x.com/recostseg/status/1704970488756232218) 2023-09-21T21:26Z 48.2K followers, 187.4K engagements "More and more of our clients are starting to use our proposal tool during due-diligence on a property. We'll let you know exactly what you could expect in depreciation if you purchase and the cost of a study. Our clients use this in underwriting and while raising money for a deal. Why wouldn't you want to let investors know what they can expect in deductions Tax efficiency is a huge part of real estate. We love helping folks out here" [X Link](https://x.com/recostseg/status/1711442894660231550) 2023-10-09T18:05Z 42.5K followers, 52.6K engagements "@sweatystartup We love to partner with our repeat clients on this. We work with buyers sellers and developers to help underwrite their deals" [X Link](https://x.com/recostseg/status/1711472198781727172) 2023-10-09T20:02Z 48.1K followers, [----] engagements "Too many entrepreneurs make boatloads of money each year but pay uncle sam 50% of it. It takes a long time to build a massive wealth snowball when 50% of your snow gets lopped off each year. Real estate fixes this: Cashflow from entrepreneurship - Buy real estate as a "real estate professional"- Book losses through bonus depreciation - End up with all cash and no tax. The snowball ends up a lot larger [--] years down the road when the money is made in a tax efficient way" [X Link](https://x.com/recostseg/status/1713912279928807484) 2023-10-16T13:38Z 40.3K followers, 128K engagements "Warning: If you depreciate a property down near zero and then have to sell your property at a loss during a situation of distress. You could end up giving all the proceeds to the bank AND owe the IRS a big chunk of money for recapture. Long term tax planning with real estate needs to be coupled with risk management and MAKING SURE YOU DON'T LOSE ANY PROPERTIES" [X Link](https://x.com/recostseg/status/1716822965663436883) 2023-10-24T14:24Z 40.5K followers, 14.8K engagements "The tax advantages of buying / holding gas stations are massive. Gas stations are all [--] and [--] year property so you can bonus depreciate the whole thing (minus land value). A $1 million acquisition might mean a $800k deduction" [X Link](https://x.com/recostseg/status/1716823370208313574) 2023-10-24T14:26Z 40.7K followers, 68.6K engagements "The golden rule of real estate: NEVER run out of money. Many of my clients would happily pay an 8% interest rate and stash that cash in short term treasuries at 5%. Sometimes paying millions a year in premiums to keep their cash liquid. No cash when you need it = game over" [X Link](https://x.com/recostseg/status/1717549895609893192) 2023-10-26T14:33Z 44.8K followers, 105.8K engagements "I met an investor today worth $50 million +. He owns hundreds of millions worth of real estate with his partners and has been accumulating great assets for years. He didn't know that bonus depreciation existed. His CPA never sat him down after the [----] tax changes" [X Link](https://x.com/recostseg/status/1719363092935762173) 2023-10-31T14:38Z 41.6K followers, 124K engagements "Many of my clients are making offers on real estate with zero leverage or 25% leverage. Three years ago they were making offers with 60-70% leverage and 30-40% equity. To buy a $10 million deal three years ago they used $3-4 million in cash. Today they're prepared to outlay $7.5 to $10 million in cash. Wild how things have changed" [X Link](https://x.com/recostseg/status/1721644094575743474) 2023-11-06T21:41Z 42.2K followers, 83.1K engagements "Almost every mega-rich family owns and holds a lot of real estate for one main reason: Its the best way to compound wealth while giving virtually nothing to Uncle Sam" [X Link](https://x.com/recostseg/status/1724452125801894275) 2023-11-14T15:40Z 42.5K followers, 41.7K engagements "The cash flow and appreciation aspects of real estate are phenomenal. The ability to utilize leverage to amplify your rewards is incredible. But the tax treatment makes it downright unbelievable" [X Link](https://x.com/recostseg/status/1727091517490090103) 2023-11-21T22:28Z 42.5K followers, [----] engagements "The most important person on any real estate investor's team: CPA" [X Link](https://x.com/recostseg/status/1727831392720183799) 2023-11-23T23:28Z 42.5K followers, 12.7K engagements "A Q for the semi-successful real estate folks out there: As a college grad would you rather start with Real estate private equity firm Developer Private landlord / operator Large REIT operator Construction management Brokerage Insurance Lending Large or small shop" [X Link](https://x.com/recostseg/status/1729930473940390336) 2023-11-29T18:29Z 44.7K followers, [----] engagements "Real estate investors can make millions a year and pay almost nothing in TAXES by utilizing a loophole called Bonus Depreciation. A post on exactly how it works (and how you can utilize it): Depreciation is the act of slowly over time deducting the initial expense of an asset against your taxable income. Generally over a [----] (residential) or [--] (commercial) yr time frame. So each year you can write off 2-3.6% of the purchase price against your cashflow. That's a big deal. Example: My client bought a self storage facility for $3MM. For him this meant a $76k (2.5%) a year write off against" [X Link](https://x.com/recostseg/status/1730633478083866737) 2023-12-01T17:02Z 48.1K followers, 190.6K engagements "The tax saving jackpot: A high W2 income earner or business owner married to a real estate professional. Cash from business / w2 + losses from real estate investment and cost segregation = all cash and no tax" [X Link](https://x.com/recostseg/status/1732485311832228013) 2023-12-06T19:41Z 50.7K followers, 262.7K engagements "COST SEGREGATION: Cost segregation involves dividing a property into its individual components for tax purposes. Some parts age faster like carpets or paint. Your CPA can use this info to more accurately depreciate elements of your property leading to potential tax savings" [X Link](https://x.com/recostseg/status/1734308681615802524) 2023-12-11T20:26Z 44.8K followers, [----] engagements "BASIS: Your basis is the initial price that you paid for your property including any expenses or improvements. Knowing your basis is crucial for tax purposes as it's used to evaluate depreciation & determine the capital gains or losses if/when your property sells" [X Link](https://x.com/recostseg/status/1734308682744086649) 2023-12-11T20:26Z 44.8K followers, [----] engagements "Making $10m over a 5-year period and paying 1/2 in taxes means your net worth when you die is TENS OF MILLIONS smaller than being able to compound that $ over time without giving 40-50% to Uncle Sam. Real estate is the cheat code" [X Link](https://x.com/recostseg/status/1734733392388993335) 2023-12-13T00:34Z 44.9K followers, 11.2K engagements "Death and taxes. The two facts of life. Except for real estate investors who buy cost seg die and step up in basis. Income taxes can technically be deferred forever" [X Link](https://x.com/anyuser/status/1735703306465669583) 2023-12-15T16:48Z [--] followers, 12.1K engagements "@OliverSims No - you have until the tax return deadline" [X Link](https://x.com/recostseg/status/1736839104304759014) 2023-12-18T20:01Z 45.7K followers, [----] engagements "@shawnwallard You can Amend your [----] tax return or file a [----] in 2023" [X Link](https://x.com/recostseg/status/1736848075824460155) 2023-12-18T20:37Z 45.7K followers, [----] engagements "The tax saving jackpot: A high W2 income earner or business owner married to a real estate professional. Cash from business / w2 + losses from real estate investment and cost segregation = all cash and no tax" [X Link](https://x.com/recostseg/status/1737223082564309066) 2023-12-19T21:27Z 45.7K followers, 65.2K engagements "REMINDER: There is no such thing as avoiding taxes all together. A tax deferral mechanism like cost segregation and depreciation is a future liability. You know that huge tax savings it delivers when you buy something You are kicking the can down the road. It comes back around through recapture when you sell. Even if you sell at a loss. It is a liability in your capital stack and you should be prepared to deal with it upon liquidation. Yes you can [----]. Yes you can die and step up the basis for your kids. But more likely youll owe a chunk of money to the government you didnt pay them earlier." [X Link](https://x.com/recostseg/status/1737500438780428318) 2023-12-20T15:49Z 45.7K followers, 30.3K engagements "Hurry up and close your deal before the end of the year Bonus depreciation drops from 80% to 60% on January 1st at midnight. One of our clients is racing the clock right now and about $100k of tax deferral is on the line It'll be a fire drill for all involved" [X Link](https://x.com/recostseg/status/1738015255584780360) 2023-12-22T01:55Z 45.7K followers, [----] engagements "@bhallcpa STRs get 25-35% of improvement value in our experience but it varies based on what we find when we evaluate the property. The purchase price is only one piece of the puzzle. This is our rundown of other factors to consider: A common question we receive from clients is How much will I save in taxes this year if I buy real estate Here is a framework to think about how buying properties create the most tax efficiency for you. THE [--] LEVERS OF DEPRECIATION A common question we receive from clients is How much will I save in taxes this year if I buy real estate Here is a framework to" [X Link](https://x.com/recostseg/status/1742663387782287511) 2024-01-03T21:45Z 48.1K followers, [---] engagements "One of my clients: Runs a general contracting biz generating $1m+ in profit for him personally. Fixing up houses for clients with his Rolodex of contractors. He taxes the cashflow from that business and buys dilapidated real estate every year in the exact markets he runs his company in. He uses his business to fix it up then rents it out and gets a big chunk of bonus depreciation each year. His real estate holdings have surpassed his contracting business valuation by a long shot. Pays NOTHING in taxes each year" [X Link](https://x.com/recostseg/status/1745141330450235609) 2024-01-10T17:51Z 48.1K followers, 130.8K engagements "@ChandlerReedSMB As long as this hypothetical person meets the IRS definition (pub 925) of a RE pro ☺. Its always best to check with your CPA - they are the ones that designate RE pro status when filing your tax return" [X Link](https://x.com/anyuser/status/1745174102380311013) 2024-01-10T20:01Z [--] followers, [----] engagements "For all my friends feeling gloomy watching bonus depreciation step down to 60% this year. There are bipartisan proposals to restore three key provisions from Tax Cuts Jobs Act INCLUDING bonus depreciation. Excitement building for the potential of big [----] retroactive tax changes: bonus depreciation 163j (interest expense limitation) and R&D capitalization. There's the child tax credit too but if you care about the first three you probably don't care about the CTC. Excitement building for the potential of big [----] retroactive tax changes: bonus depreciation 163j (interest expense limitation)" [X Link](https://x.com/recostseg/status/1745191029123207232) 2024-01-10T21:09Z 48.1K followers, 18.9K engagements "@Rudolph_Cos @coreyandj @baldridgecpa The key word here is own. To qualify you need at least 5% equity. Hold Co is a better option she meets all of the other IRS criteria" [X Link](https://x.com/anyuser/status/1745610948612653122) 2024-01-12T00:57Z [--] followers, [---] engagements "Good news for real estate investors - Proposed legislation will (retroactively) extend bonus depreciation through [----] with 20% bonus starting in [----]. These regs proposed and still have a way to go" [X Link](https://x.com/recostseg/status/1747293048944607249) 2024-01-16T16:21Z 48.2K followers, 16.2K engagements "The tax lifecycle of real estate: [--]. Buy with leverage [--]. Cost segregate and depreciate initial capital in [--]. Stabilize and borrow tax-free against asset [--]. Enjoy low tax cashflow year over year [--]. [----] exchange into a larger asset repeat [--]. Die and step up basis [--]. Heirs repeat" [X Link](https://x.com/anyuser/status/1747329031794532545) 2024-01-16T18:44Z [--] followers, 112.5K engagements "Warning: If you depreciate a property down near zero and then have to sell your property at a loss during a situation of distress. You could end up giving all the proceeds to the bank AND owe the IRS a big chunk of money for recapture. Long-term tax planning with real estate needs to be coupled with risk management and MAKING SURE YOU DON'T LOSE ANY PROPERTIES" [X Link](https://x.com/recostseg/status/1748002134535102848) 2024-01-18T15:19Z 48.1K followers, 12.8K engagements "Come learn the all cash no tax real estate playbook ANNOUNCEMENT 🚨 My friend @sweatystartup and I are hosting a webinar tomorrow Jan [--] at 1PM ET Real Estate Tax [---] We will run through the ins and outs of real estate and why it is one of the best tax incentivized investments out there Join us - https://t.co/ZTsJPtqyyX ANNOUNCEMENT 🚨 My friend @sweatystartup and I are hosting a webinar tomorrow Jan [--] at 1PM ET Real Estate Tax [---] We will run through the ins and outs of real estate and why it is one of the best tax incentivized investments out there Join us - https://t.co/ZTsJPtqyyX" [X Link](https://x.com/recostseg/status/1749147224850735128) 2024-01-21T19:09Z 47.9K followers, 34.4K engagements "Too many entrepreneurs make boatloads of money each year but pay Uncle Sam 50% of it. It takes a long time to build a massive wealth snowball when 50% of your snow gets lopped off each year. Real estate fixes this: [--]. Cash flow from entrepreneurship [--]. Buy real estate as a "real estate professional" [--]. Book losses through bonus depreciation [--]. End up with all cash and no tax. The snowball ends up a lot larger [--] years down the road when the money is made in a tax-efficient way" [X Link](https://x.com/recostseg/status/1750264935454585031) 2024-01-24T21:10Z 47.9K followers, 19.2K engagements "Real estate investors developers and operators can make millions a year and pay almost nothing in TAXES by utilizing Bonus Depreciation. A thread on how it works:" [X Link](https://x.com/recostseg/status/1752743493301371239) 2024-01-31T17:19Z 48.2K followers, 137.1K engagements "So back to the $3MM property my client bought in [----]. The cost segregation study may show that 30% of the asset cost can be depreciated on a [--] yr or faster timeframe. This is 80% deductible THIS YEAR and if the Wyden Smith bill passes it is 100% deductible" [X Link](https://x.com/recostseg/status/1752743527484948901) 2024-01-31T17:19Z 48.2K followers, [----] engagements "30% of $3MM is $900k. 80% of $900k as a tax deduction. In year [--]. The facility will produce about $260k in NOI and $200k in free cashflow after interest expense. So while $200k goes into the bank account the tax LOSS is $340k" [X Link](https://x.com/recostseg/status/1752743530886496601) 2024-01-31T17:19Z 48.2K followers, [----] engagements "Investing as an LP in other peoples real estate deals is as close to passive as real estate gets. Doing the work to find operators you trust is hard work however. Trust is hard to find. When you build it cherish it" [X Link](https://x.com/recostseg/status/1753123298886684816) 2024-02-01T18:29Z 48.2K followers, [----] engagements "The very best tax strategy to implement if you are not a real estate pro: Become a real estate pro" [X Link](https://x.com/recostseg/status/1754928609259880832) 2024-02-06T18:02Z 48.2K followers, 12.3K engagements "Material participation is achieved by: [--]. Spending more than [---] hours in the business or [--]. Spending more than [---] hours and more than anyone else or substantially all the time in the business" [X Link](https://x.com/recostseg/status/1757104511423008953) 2024-02-12T18:08Z 48.2K followers, [---] engagements "So if you own an STR and meet the test you can set up a tax deduction machine. Some issues: - You have to count your time and the time other people work in the biz (cleaning maintenance etc.) - If use the property more than [--] days or 10% of the time it becomes a residence" [X Link](https://x.com/recostseg/status/1757104514673627252) 2024-02-12T18:08Z 48.2K followers, [---] engagements "The crazy thing about real estate is that one deal can change your life. One of my clients built a small business over 7+ years. Then they did their first real estate deal and made [--] years' worth of income with virtually none of the hassle they were used to" [X Link](https://x.com/recostseg/status/1759683749040570605) 2024-02-19T20:57Z 48.2K followers, 16.9K engagements "I know many real estate investors who make $1 million per year in free cashflow and haven't paid income taxes in years. They either have zero or a near zero tax liability. They just buy a building or two every year do a cost seg bonus depreciate a big chunk and shield that income" [X Link](https://x.com/recostseg/status/1760698270588752115) 2024-02-22T16:09Z 48.2K followers, [---] engagements "Everybody thinks you need a secret sauce to buy and operate real estate. Judging by my clientele its just hard work cashflow and common sense" [X Link](https://x.com/recostseg/status/1760701951786819809) 2024-02-22T16:23Z 48.3K followers, [----] engagements "A lot of entrepreneurs make great money each year but pay uncle sam nearly 50% of it. As you can imagine it takes a long time to build a large wealth snowball when 50% of your snow gets chopped off each year. Real estate fixes this: The best model that Ive found is to cashflow from entrepreneurship - Buy real estate as a "real estate professional"- Book losses through bonus depreciation - End up with all cash and little to no tax. Your wealth snowball ends up a lot larger [--] years down the road when your money is made in a more tax efficient way" [X Link](https://x.com/recostseg/status/1761075304678699468) 2024-02-23T17:07Z 48.4K followers, 87.6K engagements "Big news: Weve hired Zac Prince (BlockFi founder) as the new CEO of RE Cost Seg. Over the last [--] months we have: -Grown from 0-40 employees -Done $4M+ in revenue -Have sold more than [----] cost seg studies -Have worked with owners and investors who control more than $5BN in RE assets -And weve helped our clients defer more than $180M dollars in taxes This has been one of the best chapters of my career and I am so proud of the company we have built so fast Zac is extremely talented and coming on board to help take the company to the next level. I have transitioned to the role of COO and will" [X Link](https://x.com/recostseg/status/1767174275180421562) 2024-03-11T13:02Z 50.7K followers, 153.5K engagements "@CaseyMericle @title_services Thanks Casey" [X Link](https://x.com/recostseg/status/1768040942823518478) 2024-03-13T22:26Z 49.7K followers, [--] engagements "Real estate is one of the most tax advantaged investment strategies out there. Real estate pros buy property using leverage and bonus depreciate to perpetually defer taxes. Making millions a year and often paying $0 in taxes. Short Term Rentals supercharge this: RE pros use cost segregation and bonus depreciation combined with leverage to create massive losses with minimal cash. Combined with 1031s and snowballing you create a business that never pays tax. Problem is only "RE pros" get to do it. There are [--] income classifications in the US - Active Portfolio and Passive Active income is" [X Link](https://x.com/recostseg/status/1768693714719764558) 2024-03-15T17:40Z 49.8K followers, 37.5K engagements "The tax benefits for RE pros in America are simply unmatched. I know many real estate investors who make significant free cashflow each year and haven't paid much or any income taxes in years. They just buy a building or two every year do a cost seg bonus depreciate a big chunk and shield that income. It's one of the greatest ways to protect and preserve wealth that I've ever seen" [X Link](https://x.com/recostseg/status/1770120324551409867) 2024-03-19T16:09Z 49.7K followers, 16.5K engagements "If you do a cost seg and take bonus depreciation now and then you sell your property for a large gain in the future you might need to pay what's called "recapture" taxes. This is common with real estate. It's typically not a big deal but it's important to consider this with your CPA before you sell" [X Link](https://x.com/recostseg/status/1771261008704647654) 2024-03-22T19:41Z 50.8K followers, 11.3K engagements "Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to Uncle Sam instead of compounding that cash over time. This is exactly what real estate professionals have learned to mitigate. To reduce their taxable income they just buy a building every year do a cost seg and use depreciation to reduce their tax liability dramatically. Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year. Following this strategy as a real estate professional is one" [X Link](https://x.com/recostseg/status/1772320953625665944) 2024-03-25T17:53Z 49.7K followers, 16.5K engagements "Death and taxes. The two facts of life. Except for real estate investors who buy cost seg [----] exchange into another property and when they die their properties step up in basis to their heirs. Income taxes can technically be deferred forever for RE investors" [X Link](https://x.com/recostseg/status/1773399070888878318) 2024-03-28T17:17Z 49.7K followers, [----] engagements "Great thread by one of our clients. This is a detailed breakdown of how he bought an AirBnB last year for $640K did a cost seg with us and was able to take a $184K tax deduction in year [--] via bonus depreciation. We bought an Airbnb last year that brought in over $135000 in revenue And we paid $0 in TAXES You can use the same methods we did for your Real Estate property too Heres how that works: 👇 We bought an Airbnb last year that brought in over $135000 in revenue And we paid $0 in TAXES You can use the same methods we did for your Real Estate property too Heres how that works: 👇" [X Link](https://x.com/recostseg/status/1774785993968583155) 2024-04-01T13:08Z 50.6K followers, 12.3K engagements "One of our clients recently deferred $1393939 in taxes. Heres how: In [----] they acquired a [------] square foot industrial facility for $11200000. The law doesnt allow them to deduct the full $11200000 against their taxes in year [--] so my team had to figure out the useful lifespan of each component of their property in order to maximize their tax deduction. For example a countertop has a [--] year lifespan. Sidewalks fencing and parking lots have a [--] year lifespan. HVAC for a commercial property has a [--] year lifespan and so on. But bonus depreciation allows you to deduct a huge chunk of your [--] 7" [X Link](https://x.com/recostseg/status/1775578846437229051) 2024-04-03T17:39Z 49.8K followers, 13.8K engagements "If you want to be a real estate pro you need to understand the TERMS: Here are a few definitions that you absolutely must know. Bookmark this thread and use it as your cheat sheet for [----]. Okay lets dive in:" [X Link](https://x.com/recostseg/status/1777371917525168558) 2024-04-08T16:24Z 50.4K followers, 203.1K engagements "BONUS DEPRECIATION: This is an accelerated depreciation method. It allows a substantial portion of the asset's cost to be deducted in the first year of service. In [----] the bonus depreciation rate is 80%. In [----] it decreases to 60%. In [----] the rate further reduces to 40%" [X Link](https://x.com/recostseg/status/1777371927373377878) 2024-04-08T16:24Z 50.3K followers, [----] engagements "COST SEGREGATION: Cost segregation involves dividing a property into its individual components for tax purposes. Some parts age faster like carpets or paint. Your CPA can use this info to more accurately depreciate elements of your property leading to potential tax savings" [X Link](https://x.com/recostseg/status/1777371930233835928) 2024-04-08T16:24Z 50.2K followers, [----] engagements "The simple explanation of "bonus depreciation" and how real estate investors make millions while paying little to no taxes:" [X Link](https://x.com/recostseg/status/1779923980025241810) 2024-04-15T17:25Z 50.6K followers, 147.3K engagements "Bonus Depreciation helps our clients defer millions in taxes. Cost seg studies unlock these savings but the losses won't offset your ordinary income from your job unless you are an RE Pro. Here's how to think about RE Pro status to make the best case with your CPA & the IRS:" [X Link](https://x.com/recostseg/status/1783910214552719723) 2024-04-26T17:25Z 50.6K followers, [----] engagements "RE Pro Status starts with the IRS definition of a Real Estate Professional (IRS Pub 925). It is not as simple as getting a real estate license or working for a firm that provides real estate services. Ask yourself these questions to see if you qualify:" [X Link](https://x.com/recostseg/status/1783910229325058239) 2024-04-26T17:25Z 50.6K followers, [---] engagements "If you've reached the end of this thread and your NGMI on RE pro there are a few more options: [--]. Buy RE for your business to operate out of [--]. Generate lots of passive income that you need to offset [--]. STR Loophole https://twitter.com/recostseg/status/1679283225900773381 The STR TLDR: [--]. Your STR must have [--] night average stay to qualify as a business rather than passive RE. [--]. You must materially participate in the business - You spent [---] Hours in the business - or - - You spent [---] hours and more than anyone else in the business https://t.co/Sb07WDyLMb" [X Link](https://x.com/recostseg/status/1783910405120921733) 2024-04-26T17:25Z 50.6K followers, [---] engagements "If RE Pro status is in your future congrats As always: [--]. Talk with your CPA before making any decisions [--]. Be mindful of Excess Business Loss rules [--]. Taking bonus depreciation early is a tax deferral not a tax savings. Recapture is real and debt must be repaid" [X Link](https://x.com/recostseg/status/1783910419683545371) 2024-04-26T17:26Z 50.6K followers, [---] engagements "@LorilynWilson If the property was purchased and placed in service in [----] then the property would be eligible for 100% bonus. You can amend the [----] tax return or file a [----] in [----] to catch up the bonus. Always happy to help if we can" [X Link](https://x.com/recostseg/status/1788622120110473398) 2024-05-09T17:28Z 50.7K followers, [----] engagements "What a lot of people get wrong: You don't just "get into" real estate. It takes a lot of cash. Many of my clients fall into one of two camps: They run a company that generates cash or they raise money from people who do" [X Link](https://x.com/recostseg/status/1789002135436210305) 2024-05-10T18:38Z 50.7K followers, [----] engagements "Last year Mitchell created one of the best real estate tax guides online and it's completely free. He spent 50+ hours on it to produce [----] words and [--] pages of insights for anyone who wants to learn. In the guide he covers depreciation deductions RE pro status [----] exchanges step-up in basis and a whole lot more. Just click the link enter your email and it will be sent to your inbox shortly. https://sweatystartup.ck.page/77b72edfdc https://sweatystartup.ck.page/77b72edfdc" [X Link](https://x.com/recostseg/status/1791513124907962641) 2024-05-17T16:56Z 50.7K followers, 12.1K engagements "Too many entrepreneurs make good money each year but pay Uncle Sam 35-50% of it. It takes a long time to build a massive wealth snowball when 1/3 to 1/2 of your snow gets chopped off each year. Real estate can help with this. The best model I've seen is: [--]. Earn cashflow from entrepreneurship. [--]. Buy real estate as a "real estate professional". [--]. Book losses through bonus depreciation. [--]. End up with all cash and little to no tax. Your wealth snowball ends up a lot larger [--] years down the road when you make and keep your money in a more tax-efficient way" [X Link](https://x.com/recostseg/status/1792635939602260250) 2024-05-20T19:18Z 50.7K followers, 10.1K engagements "One of our clients deferred $257972 in taxes. Heres how: In [----] they acquired a [----] square foot retail unit that houses a restaurant for $1714580. The law doesnt allow them to deduct the full $1714580 against their taxes in year [--] so my team had to figure out the useful lifespan of each component of their property in order to maximize their potential tax deduction. For example a countertop has a [--] year lifespan. HVAC for a commercial property has a [--] year lifespan. The external parking area has a [--] year life span and so on. Their goal was to use bonus depreciation to deduct a large chunk" [X Link](https://x.com/recostseg/status/1793326505939833163) 2024-05-22T17:02Z 50.7K followers, [----] engagements "There are several different types of income in the US tax code. Two main types are active income and passive income". Active income is money you earn from working such as wages from a W-2 job or income from running a business. Passive income is money you earn from investments like real estate stocks or rental income from your RE portfolio where you earn $ without actively working. Normally you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job. That is unless you are an RE Pro. The reality is that Real Estate Pro status" [X Link](https://x.com/recostseg/status/1793707335250034941) 2024-05-23T18:15Z 50.7K followers, [----] engagements "There is a unique tax deduction in the US called a conservation easement. It was designed by the IRS to encourage real estate owners to make pristine land that could be enjoyed by the public a conservation ground and thus un-developable. In return the landowner could treat the act of granting a conservation easement as tax-deductible. It would be similar to a charitable gift. In a conservation easement a real estate investor donates development rights on a piece of property to a qualified charity public agency or land conservatory. In return for the donation they get a tax deduction as if" [X Link](https://x.com/recostseg/status/1794042020375208282) 2024-05-24T16:25Z 50.7K followers, [----] engagements "The tax benefits for RE Pros in America are incredible. I know many real estate investors who make significant free cashflow each year and haven't paid much or any income taxes in years. They just buy a building or two every year do a cost seg bonus depreciate a big chunk and shield that income. It's still one of the greatest ways to protect and preserve wealth that I've seen" [X Link](https://x.com/recostseg/status/1799144551048720524) 2024-06-07T18:21Z 50.7K followers, [----] engagements "If you think about your career and your journey to build wealth over a long time horizon this is still the strategy that I like most: [--]. Start a business that produces cashflow. [--]. Use your personal cashflow to buy or invest in real estate that produces more cashflow and has other great tax benefits. [--]. Reinvest whatever money you save on taxes via depreciation back into more real estate or property improvements to continue increasing the size and quality of your portfolio. [--]. Occasionally sell and [----] into more attractive assets. [--]. WAIT as long as you can and don't die. This is easier said" [X Link](https://x.com/recostseg/status/1801270253625716812) 2024-06-13T15:07Z 50.7K followers, [----] engagements "Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to Uncle Sam instead of compounding that cash over time. This is exactly what real estate professionals have learned to mitigate. To reduce their taxable income they just buy a building every year do a cost seg and use depreciation to reduce their tax liability dramatically. Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year. Following this strategy as a real estate professional is one" [X Link](https://x.com/recostseg/status/1803107781534232797) 2024-06-18T16:49Z 50.7K followers, 31.7K engagements "Death and taxes. The two facts of life. Except for real estate investors who buy cost seg [----] exchange into another property and when they die their properties step up in basis to their heirs. Income taxes can technically be deferred forever for RE investors" [X Link](https://x.com/recostseg/status/1803532604622147822) 2024-06-19T20:57Z 50.7K followers, [----] engagements "If you want to be a real estate pro you need to understand the TERMS. Here are a few definitions that you absolutely must know: -DEPRECIATION -BONUS DEPRECIATION -COST SEGREGATION -BASIS -LAND VALUE -IMPROVEMENT VALUE [-----] -RECAPTURE DEPRECIATION: Depreciation is the decrease in $$ value of your asset over time due to wear & tear etc. Standard depreciation is deducted evenly over [----] years for residential and [--] years for commercial. Even w/o cost segregation you get to deduct depreciation each year. BONUS DEPRECIATION: This is an accelerated depreciation method. It allows a substantial" [X Link](https://x.com/recostseg/status/1803847584500351147) 2024-06-20T17:49Z 50.7K followers, [----] engagements "The cashflow and appreciation aspects of real estate are phenomenal. But it's the tax advantages of real estate that truly make it the investment of choice for some of the wealthiest families and investors in the world" [X Link](https://x.com/recostseg/status/1804193752682012925) 2024-06-21T16:44Z 50.7K followers, [----] engagements "Why I like investing in real estate more than 401(k)s. Both offer tax deferrals but here's the difference: If you're making pre-tax contributions to your 401(k) then withdrawals = ordinary income tax. With real estate gains you're paying capital gains tax (which is typically lower). Plus RE investors get: [--]. Cash flow from their properties [--]. The ability to do cost segregation and bonus depreciation [--]. The ability to use leverage to acquire more attractive assets and amplify their potential gains [--]. A physical property that has real-world use and value vs. holding stocks and bonds [--]. The" [X Link](https://x.com/recostseg/status/1806754969208447000) 2024-06-28T18:22Z 50.7K followers, [----] engagements "A common question we receive from clients is How much will I save in taxes this year if I buy real estate Here is a framework to think about how buying properties create the most tax efficiency for you. THE [--] LEVERS OF DEPRECIATION" [X Link](https://x.com/recostseg/status/1807841118257565939) 2024-07-01T18:18Z 50.8K followers, 156.2K engagements "Lever [--] - % of Land One of the components of a property is land. Land is NOT DEDUCTIBLE so low value land properties mean more tax deduction. A value of your overall purchase will be assigned to the land or lot. You receive no near-term tax benefits for buying land" [X Link](https://x.com/recostseg/status/1807841120543555696) 2024-07-01T18:18Z 50.8K followers, [----] engagements "Lever [--] - % Tax Rate Another HUGE consideration. Depreciation is a deduction that you are allowed to take at your Marginal Tax Rate. Similar to a 401k part of the strategy is a tax arbitrage. It is a much better outcome to take the deduction at 37% rather than 24%" [X Link](https://x.com/recostseg/status/1807841136842625113) 2024-07-01T18:18Z 50.8K followers, [----] engagements "Lever [--] - % Bonus Allowed In [----] Bonus depreciation has been limited to 60% and will continue to ramp down 20%/yr until it hits zero in [----]. Bonus depreciation has come and gone in the past but the more you get that first year payback is higher and higher" [X Link](https://x.com/recostseg/status/1807841139099422894) 2024-07-01T18:18Z 50.8K followers, [----] engagements "This is the simple playbook that tons of Americans have used to build wealth over the last [--] decades: [--]. Earn free cashflow from their business. [--]. Invest their personal profits into real estate. [--]. Do a cost seg study and take bonus depreciation to offset other income. (This works best when you or your spouse are RE pros) [--]. End up with a lot of cash and little to no tax each year. [--]. Make more money buy more buildings and repeat. These folks have compounded their wealth significantly faster than their W2 counterparts since they don't lose 30-50% to taxes each year" [X Link](https://x.com/recostseg/status/1808531215000940849) 2024-07-03T16:00Z 50.8K followers, [----] engagements "Happy July 4th to our CRE community I hope everyone gets to see some fireworks tonight :)" [X Link](https://x.com/recostseg/status/1808869368123605462) 2024-07-04T14:23Z 50.8K followers, [----] engagements "Limited partners or investors in real estate deals can absolutely benefit from depreciation. RE Pro Status supercharges this. If you or your spouse are an RE Pro your LP investments can lead to depreciation offsetting both passive and active income. If you are not an RE Pro the losses due to depreciation can only be used to offset passive incomesuch as income from other rental properties or other passive investments" [X Link](https://x.com/recostseg/status/1811461749230424305) 2024-07-11T18:05Z 50.8K followers, [----] engagements "What a lot of people get wrong: You don't just "get into" real estate. It takes a lot of cash. Many of my clients fall into one of two camps: They either run a company that generates cash or they raise money from people who do" [X Link](https://x.com/recostseg/status/1813624541417283985) 2024-07-17T17:19Z 50.8K followers, [----] engagements "@moseskagan Thanks Moses We're excited for folks to use and get value from this. Anyone who is interested can try it here: http://recostseg.com/depreciation-calculator http://recostseg.com/depreciation-calculator" [X Link](https://x.com/recostseg/status/1816502059081871414) 2024-07-25T15:53Z 50.7K followers, [---] engagements "Many of the most successful real estate owners aren't just passive" investors. They think about RE as an active business and they know the levers that they can use to raise rents reduce costs and increase NOI. They buy properties with a plan to add value but are also patient enough to allow father time to do his thing. They apply the SMB operator mindset to RE and thats why they continue to outperform" [X Link](https://x.com/recostseg/status/1816892117035446492) 2024-07-26T17:43Z 51.4K followers, [----] engagements "To qualify as an RE Pro you must: [--]. Spend more than half of your total working hours in an RE business in which you materially participate. [--]. You must work at least [---] hours per year in a qualified RE business. So most people who have high-earning W-2 jobs outside of real estate won't qualify. But the unique thing about RE pro status is that even if you dont qualify but your spouse does you can both file jointly and claim the losses from your RE investments to offset your other active income together. It's an incredibly powerful benefit if you do meet the criteria" [X Link](https://x.com/recostseg/status/1820869337168728333) 2024-08-06T17:07Z 50.7K followers, 96.2K engagements "The playbook on how to use real estate to build wealth tax efficiently: [--]. Buy with moderate leverage [--]. Cost segregate and depreciate initial capital in [--]. Stabilize and borrow tax free against your asset [--]. Enjoy low tax cashflow year over year [--]. Eventually [----] exchange into a larger asset and repeat [--]. Die and step up basis [--]. Have your heirs repeat Many wealthy families do this over and over again and pay little to no taxes as their RE portfolio continues to grow" [X Link](https://x.com/recostseg/status/1821627106616586343) 2024-08-08T19:18Z 51.6K followers, 12.9K engagements "Understanding your depreciable basis: Imagine you bought a property for $2M. The land (excluding any structures) is valued at $400K. Since land is not depreciable in the eyes of the IRS we subtract the land value from your purchase price to get your depreciable basis. Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either [--] [--] or [--] year property. In the scenario above your starting basis would be $1.6M since your basis = your purchase price - the land value. Having an accurate land value is essential to getting your" [X Link](https://x.com/recostseg/status/1821950680694698236) 2024-08-09T16:44Z 51.6K followers, 10.3K engagements "Thank you Moses We've done cost seg studies on 2500+ properties and counting. STRs storage facilities apartment complexes shopping centers gas stations office buildings restaurants hotels and more. We'll happily cost seg properties and portfolios of any size. We're also excited to see everyone at Reconvene next month. We promise that the coffee and conversation is going to be good Writing to recommend RE Cost Seg for commercial real estate cost segregations. They did a study on a small building my folks intend to own forever; service was excellent and my folks' CPA was so impressed with the" [X Link](https://x.com/recostseg/status/1823041068679741660) 2024-08-12T16:57Z 51.6K followers, 11.7K engagements "There is a unique tax deduction in the US called a conservation easement. It was designed by the IRS to encourage real estate owners to make pristine land that could be enjoyed by the public a conservation ground and thus un-developable. In return the landowner could treat the act of granting a conservation easement as tax-deductible. It would be similar to a charitable gift. In a conservation easement a real estate investor donates development rights on a piece of property to a qualified charity public agency or land conservatory. In return for the donation they get a tax deduction as if" [X Link](https://x.com/recostseg/status/1823779468634210418) 2024-08-14T17:51Z 51.6K followers, [----] engagements "Newton's law of tax: What goes down must come up. Everyone enjoys the sweet benefits of bonus depreciation but what happens when you sell A post on RECAPTURE: People are concerned about recapture when they cost segregate their improvements and for good reason. Recapture is real and those deferred taxes will need to be paid. But fear not If you think ahead you can minimize recapture with the right tax planning. So. What is recapture Basically there's no free lunch when it comes to taxes. Depreciating property lowers your tax basis. When you go to sell you're subject to tax on the amount of" [X Link](https://x.com/recostseg/status/1824470344586969380) 2024-08-16T15:36Z 51.6K followers, 70.8K engagements "As always DYOR and talk with your CPA. Please drop any Qs in the comments. I'm tagging in experts on some of these areas as well. CPAS @baldridgecpa & @rledbetterCPA [----] @1031Specialists and @1031ExchangeRE OZ @DallasAptGP" [X Link](https://x.com/recostseg/status/1824470347086729448) 2024-08-16T15:36Z 51.6K followers, [----] engagements "The tax benefits for RE Pros in America are incredible. I know many real estate investors who make significant free cashflow each year and haven't paid much or any income tax in years. They just buy a building or two every year do a cost seg bonus depreciate a big chunk and then offset that income. It's still one of the greatest ways to protect and preserve wealth that I've seen" [X Link](https://x.com/recostseg/status/1827037573086068853) 2024-08-23T17:37Z 51.6K followers, [----] engagements "If you think about your career and your journey to build wealth over a long time horizon this is still the strategy that I like most: [--]. Start a business that produces cashflow. [--]. Use your personal cashflow to buy or invest in real estate that produces more cashflow and has other great tax benefits. [--]. Reinvest whatever money you save on taxes via depreciation back into more real estate or property improvements to continue increasing the size and quality of your portfolio. [--]. Occasionally sell and [----] into more attractive assets. [--]. WAIT as long as you can and don't die. This is easier said" [X Link](https://x.com/recostseg/status/1828793029651562790) 2024-08-28T13:53Z 51.6K followers, [----] engagements "Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to Uncle Sam instead of compounding that cash over time. This is exactly what real estate professionals have learned to mitigate. To reduce their taxable income they just buy a building every year do a cost seg and use depreciation to reduce their tax liability dramatically. Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year. Following this strategy as a real estate professional is one" [X Link](https://x.com/recostseg/status/1829522658637062470) 2024-08-30T14:12Z 51.6K followers, [----] engagements "The cashflow and appreciation aspects of real estate are phenomenal. The ability to utilize leverage to amplify your gains is also incredible. But it's the tax advantages of real estate that truly make it the investment of choice for some of the most wealthy families and investors in the world" [X Link](https://x.com/recostseg/status/1832090383230349322) 2024-09-06T16:16Z 51.3K followers, [----] engagements "When thinking about depreciation it's not about when you buy the property it is when you "put it into service." When you buy determines your short/long term capital gains. The "in-service" date = The point in time when you can start taking depreciation from" [X Link](https://x.com/recostseg/status/1833537234928365822) 2024-09-10T16:05Z 51.6K followers, [----] engagements "Why I like investing in real estate more than 401(k)s. Both offer tax deferrals but here's the difference: If you're making pre-tax contributions to your 401(k) then withdrawals = ordinary income tax. With real estate gains you're paying capital gains tax (which is typically lower). Plus RE investors get: [--]. Cash flow from their properties [--]. The ability to do cost segregation and bonus depreciation [--]. The ability to use leverage to acquire more attractive assets and amplify their potential gains [--]. A physical property that has real-world use and value vs. holding stocks and bonds [--]. The" [X Link](https://x.com/recostseg/status/1833927488428540233) 2024-09-11T17:56Z 51.6K followers, [----] engagements "Lever [--] = % of the property with a shorter useful life. Not all parts of a piece of real estate are depreciated at the same speed. Certain personal property assets have SHORTER lifespans in the eyes of the IRS vs the standard 27.5/39 year lives. This means bonus depreciation" [X Link](https://x.com/recostseg/status/1834642517515718773) 2024-09-13T17:17Z 51.6K followers, [---] engagements "Properties with tons of this often have: - Over-developed land sites (hardscaping pools retaining walls) - Fancy Fixtures - Fancy Furniture (STRs) - Lots of Equipment (R&D Facilities Car Washes) - Gas Stations (100% [--] year properties) - Movable walls (self storage)" [X Link](https://x.com/recostseg/status/1834642540299206736) 2024-09-13T17:17Z 51.6K followers, [---] engagements "The tax benefits of bonus depreciation can lead to massive savings but losses wont help you one bit if you cant use them. Before you buy a cost seg you need to know the rules:" [X Link](https://x.com/recostseg/status/1839702555863261598) 2024-09-27T16:24Z 51.6K followers, 51.6K engagements "Tax all starts with the types of income. Active = Income earned from Material Participation. Whether that's SMB W-2 contract income or prof real estate. This is income where ordinary tax is paid and losses offset other income. Other sources have certain loss limitations" [X Link](https://x.com/recostseg/status/1839702578839663035) 2024-09-27T16:24Z 51.6K followers, [----] engagements "Portfolio = Income derived from financial instruments like dividends interest royalties and capital gains. Mostly income w/out loss potential and favorable tax rates. Cap losses may offset cap gains with up to a $3000 loss. Investment interest can be deductible" [X Link](https://x.com/recostseg/status/1839702601606353194) 2024-09-27T16:24Z 51.6K followers, [----] engagements "Passive income which sec [---] defines as: [--]. Income from a trade or business where a taxpayer doesnt materially participate. [--]. Rental activity. Passive losses may only offset passive income not active or portfolio" [X Link](https://x.com/recostseg/status/1839702624419062143) 2024-09-27T16:24Z 51.6K followers, [---] engagements "This is a problem for wage-earning real estate investors. So HOW DO I GET THOSE DEDUCTIONS Become a Material Participant. We are given a clear framework for determining Material Participation (not passive) in Pub [---]. There are [--] scenarios that will get you there" [X Link](https://x.com/recostseg/status/1839702647089303908) 2024-09-27T16:24Z 51.6K followers, [---] engagements "As well as: [--]. You materially participated in the activity for any [--] of the last [--] tax years [--]. Personal service activity w participation in last [--] years [--]. Continuous participation" [X Link](https://x.com/recostseg/status/1839702692467454441) 2024-09-27T16:24Z 51.6K followers, [---] engagements "This is great if you are talking about an SMB with effectively connected Real Estate. Note rental activity is considered passive unless you meet the RE Pro threshold of [---] hours and more than 1/2 your time. This is the conundrum for passive real estate investors" [X Link](https://x.com/recostseg/status/1839702715200631260) 2024-09-27T16:24Z 51.6K followers, [---] engagements "One pitfall of a RE Pro spouse if you are full-time W-2. Mind Excess Business Loss Rules. You can only offset W-2 income with $610K in [----]. For single filers the limit is $305K" [X Link](https://x.com/recostseg/status/1839702806003163437) 2024-09-27T16:25Z 51.6K followers, [---] engagements "2. Run an Opco/Propco model. If your business utilizes real estate as part of ongoing operations you can get all the tax benefits of active RE by having the building purchase and hold the RE" [X Link](https://x.com/recostseg/status/1839702828631371812) 2024-09-27T16:25Z 51.6K followers, [---] engagements "3. Build an SMB on top of your real estate (the reverse of #2) Short-term rentals and high owner-participation real estate businesses can have great returns. Obviously not for you if you just want passive RE" [X Link](https://x.com/recostseg/status/1839702851419049998) 2024-09-27T16:25Z 51.6K followers, [----] engagements "Too many entrepreneurs make good money each year but pay Uncle Sam 35-50% of it. It takes a long time to build a massive wealth snowball when 1/3 to 1/2 of your snow gets chopped off each year. Real estate can help with this. The best model I've seen is: [--]. Earn cashflow from entrepreneurship. [--]. Buy real estate as a "real estate professional." [--]. Book losses through bonus depreciation. [--]. End up with all cash and little to no tax. Your wealth snowball ends up a lot larger [--] years down the road when you make and keep your money in a more tax efficient way" [X Link](https://x.com/recostseg/status/1843694847762513926) 2024-10-08T16:48Z 51.6K followers, [----] engagements "Many of the most successful real estate owners aren't just passive" investors. They think about RE as an active business and they know the levers that they can use to raise rents reduce costs and increase NOI. They buy properties with a plan to add value but are also patient enough to allow father time to do his thing. They apply the SMB operator mindset to RE and thats why they continue to outperform" [X Link](https://x.com/recostseg/status/1844777985544712649) 2024-10-11T16:32Z 51.4K followers, [----] engagements "Bonus Depreciation helps our clients defer millions in taxes. Cost segs unlock these savings but the losses won't offset your ordinary income from your job unless you are an RE Pro. Here's how to think about RE Pro status to make the best case with your CPA and the IRS:" [X Link](https://x.com/recostseg/status/1845866407097245960) 2024-10-14T16:37Z 51.6K followers, [----] engagements "RE Pro Status starts with the IRS definition of a Real Estate Professional (IRS Pub 925). It is not as simple as getting a real estate license or working for a firm that provides real estate services. Ask yourself these questions to see if you qualify:" [X Link](https://x.com/recostseg/status/1845866430090420336) 2024-10-14T16:37Z 51.6K followers, [---] engagements "Q1: Are you in the right business A real estate pro is spending their time in real property business. Builders house flippers brokers etc. Unfortunately banking and finance services and certain architect and engineering services don't qualify. This includes cost seg pros" [X Link](https://x.com/recostseg/status/1845866458645250181) 2024-10-14T16:37Z 51.6K followers, [---] engagements "To materially participate you must be involved in the operations of the activity on a regular continuous and substantial basis. Once you pass the pro test the material participation often comes along for the ride" [X Link](https://x.com/recostseg/status/1845866619668672759) 2024-10-14T16:37Z 51.6K followers, [---] engagements "You can elect to aggregate all rental real estate for purposes of measuring material participation under Sec. 1.469-9(g). Your time spent on all your rental properties (STRs don't qualify) counts as one activity making it easier to materially participate" [X Link](https://x.com/recostseg/status/1845866642238312857) 2024-10-14T16:37Z 51.6K followers, [---] engagements "What happens to your RE portfolio when you pass away Do your heirs pay significant taxes This is a common question among real estate owners. Let's dive in: The reality is that wealthy families often pass on real estate assets from generation to generation. For example if one generation has an RE entrepreneur who amasses $50 million worth of real estate that portfolio can generate enough cash flow to support multiple future generations comfortably when passed on. So what happens if that initial investor built their empire by rapidly depreciating assets and using [----] exchanges to lower the" [X Link](https://x.com/recostseg/status/1846232574861234593) 2024-10-15T16:52Z 51.6K followers, [----] engagements "This is why RE folks love cost segregation and bonus depreciation. The bonus depreciation rate is lower now (60% in 2024) but the tax savings available are still incredibly good. We purchased this Circle K gas station a few years ago for $1450000. We wrote off $1160000 of income in Year [--]. As a result we saved $430000 in taxes that same year. Our down payment was effectively FREE. Bonus depreciation is beautiful. https://t.co/oW36Qf0yJt We purchased this Circle K gas station a few years ago for $1450000. We wrote off $1160000 of income in Year [--]. As a result we saved $430000 in taxes that" [X Link](https://x.com/recostseg/status/1846249627747533201) 2024-10-15T17:59Z 51.6K followers, [----] engagements "The playbook on how to use real estate to build wealth tax efficiently: [--]. Buy with moderate leverage [--]. Cost segregate and depreciate initial capital in [--]. Stabilize and borrow tax free against your asset [--]. Enjoy low tax cashflow year over year [--]. Eventually [----] exchange into a larger asset and repeat [--]. Die and step up basis [--]. Have your heirs repeat Many wealthy families do this over and over again and pay little to no taxes as their RE portfolio continues to grow" [X Link](https://x.com/recostseg/status/1848398092313178536) 2024-10-21T16:17Z 51.6K followers, [----] engagements "I've seen a lot of folks jump through hoops to buy below average properties for too much money with [----] exchanges on the line. Reminder: It takes a long time to recover from a basis that is too high. Never let the tax tail wag the profit dog" [X Link](https://x.com/recostseg/status/1852391407480365563) 2024-11-01T16:45Z 51.6K followers, [----] engagements "Join Nick Huber and Zac Prince CEO of RE Cost Seg for a free workshop on real estate taxes on November 12th at 10am EST. Just click the link below to RSVP. If you register well send you a copy of the recording even if you cant attend live https://hubs.ly/Q02WGgfy0 https://hubs.ly/Q02WGgfy0" [X Link](https://x.com/recostseg/status/1852450400634282302) 2024-11-01T20:39Z 51.5K followers, 108.6K engagements "The tax benefits for real estate owners and investors in America are incredible. The most sophisticated RE investors I know buy properties build equity earn cashflow and use cost segregation + bonus depreciation to pay very little in taxes each year. Nick and Zac are hosting a free workshop tomorrow at [--] a.m. EST to cover the tactics and strategies you need to know. Just click the link below to RSVP. If you register well send you a copy of the recording even if you cant attend live. https://lu.ma/sxh7rdsu https://lu.ma/sxh7rdsu" [X Link](https://x.com/recostseg/status/1855993214014001579) 2024-11-11T15:17Z 51.5K followers, [----] engagements "A client of ours bought a ranch to use as a short term rental property in [----] for $1.7 million. After our engineers did a virtual site visit they were able to assign a value of $347000 into either 5-7-15 year assets that were eligible for depreciation. In [----] the bonus depreciation amount that you could take was 100%. This means that the owner could immediately deduct the full amount of eligible property in the year it was placed in service rather than depreciating it over time. With that in mind he took the full $347K deduction in his first year of ownership to offset taxable income from" [X Link](https://x.com/recostseg/status/1856387734971265269) 2024-11-12T17:25Z 51.5K followers, [----] engagements "People often forget that real estate is incredibly expensive to transact. Lawyers title insurance closing companies inspections appraisals brokers taxes etc. Holding real estate for a long time makes a lot of sense when you think about the complexity and fees you have to deal with on the way out" [X Link](https://x.com/recostseg/status/1859270317828436028) 2024-11-20T16:19Z 51.4K followers, [----] engagements "If you want to be a real estate pro you need to understand the terms. Here are a few definitions that you absolutely must know. Bookmark this thread and use it as your cheat sheet. Here are the terms that Ill define in this thread: -DEPRECIATION -BONUS DEPRECIATION -COST SEGREGATION -BASIS -LAND VALUE -IMPROVEMENT VALUE [-----] -RECAPTURE DEPRECIATION: Depreciation is the decrease in $$ value of your asset over time due to wear & tear etc. Standard depreciation is deducted evenly over [----] years for residential and [--] years for commercial. Even w/o cost segregation you get to deduct" [X Link](https://x.com/recostseg/status/1861096763333214595) 2024-11-25T17:17Z 51.4K followers, [----] engagements "When thinking about depreciation it's not about when you buy the property it is when you "put it into service." When you buy determines your short/long term capital gains. The "in-service" date = The point in time when you can start taking depreciation from" [X Link](https://x.com/recostseg/status/1862530963164864849) 2024-11-29T16:16Z 51.3K followers, [----] engagements "Why we like investing in real estate more than 401(k)s. Both offer tax deferrals but here's the difference: If you're making pre-tax contributions to your 401(k) then withdrawals = ordinary income tax. With real estate gains you're paying capital gains tax (which is typically lower). Plus RE investors get: [--]. Cash flow from their properties [--]. The ability to do cost segregation and bonus depreciation [--]. The ability to use leverage to acquire more attractive assets and amplify their potential gains [--]. A physical property that has real-world use and value vs. holding stocks and bonds [--]. The" [X Link](https://x.com/recostseg/status/1863606298891411717) 2024-12-02T15:29Z 51.3K followers, [----] engagements "Many find that anywhere from 15-35% of the purchase price of a typical apartment complex is this type of property. More of it means less tax for you from higher depreciation amounts" [X Link](https://x.com/recostseg/status/1864688376315555873) 2024-12-05T15:08Z 51.3K followers, [---] engagements "Lever [--] = % of Leverage: This is a big one The more leverage (debt) that is applied to a property or deal the more cost savings you will get up front relative to the equity you put in. Let's say you buy a $10 MM dollar deal that has $3 MM of year one depreciation" [X Link](https://x.com/recostseg/status/1864688378521829524) 2024-12-05T15:08Z 51.3K followers, [---] engagements "If you used $7M of bank debt and only $3M of equity your year [--] deduction could equal the amount of money you put into the deal If you had used cash for the full $10M you would get a deduction worth 30% of your investment. (remember more debt = more risk)" [X Link](https://x.com/recostseg/status/1864688381151584414) 2024-12-05T15:08Z 51.3K followers, [---] engagements "Lever [--] = % Tax Rate Another HUGE consideration. Depreciation is a deduction that you are allowed to take at your Marginal Tax Rate. Similar to a 401k part of the strategy is a tax arbitrage. It is a much better outcome to take the deduction at 37% rather than 24%" [X Link](https://x.com/recostseg/status/1864688383580078568) 2024-12-05T15:08Z 51.3K followers, [---] engagements "Real estate is fun when you can buy add value and sell. But it's even better when you can buy add value and hold for 20+ years. Never underestimate the power of compounding. It's amazing how much your wealth can grow if you just buy great assets in great locations every few years and then hold them for a very long time" [X Link](https://x.com/recostseg/status/1865074473407226285) 2024-12-06T16:43Z 51.3K followers, [----] engagements "This is the simple playbook that tons of Americans have used to build wealth over the last [--] decades: [--]. Earn free cashflow from their business. [--]. Invest their personal profits into real estate. [--]. Do a cost seg study and take bonus depreciation to offset other income. (This works best when you or your spouse are RE pros) [--]. End up with a lot of cash and little to no tax each year. [--]. Make more money buy more buildings and repeat. These folks have compounded their wealth significantly faster than their W2 counterparts since they don't lose 30-50% to taxes each year" [X Link](https://x.com/recostseg/status/1866143014143340857) 2024-12-09T15:29Z 51.3K followers, 26.4K engagements "The cold hard truth about the American tax code: It is designed to benefit entrepreneurs & businesses not employees. Asset owners not renters. Investors not consumers. The US wants to incentivize growth and risk. As soon as you start to understand this your strategy w/ the above in mind will change" [X Link](https://x.com/recostseg/status/1866506660312682753) 2024-12-10T15:34Z 51.3K followers, [----] engagements "Want to learn more about RE Pro Status and tax saving strategies for CRE Watch this video below:" [X Link](https://x.com/recostseg/status/1866876094399320192) 2024-12-11T16:02Z 51.3K followers, [----] engagements "A lie: Bonus depreciation is only for new properties or acquisitions. The truth: You can retroactively apply bonus depreciation to property placed in service after September [--] [----] when the Tax Cuts and Jobs Act passed changing various rules. The IRS allows you to claim missed depreciation deductions by adjusting your current year's tax return without needing to amend previous year's returns. This is typically done through a change in accounting method using IRS Form [----]. The best part: We now offer services to help you prepare your form [----] as an optional add-on to your cost seg study" [X Link](https://x.com/recostseg/status/1867240747139035574) 2024-12-12T16:11Z 51.3K followers, [----] engagements "A client of ours: Passively owns a stake in a business generating pretty substantial profits for him each year. He then buys real estate most years and gets a big chunk of bonus depreciation. When he does this he ends up paying very little taxes. The ability to compound wealth by using this strategy is pretty magical. SMB + RE is a phenomenal way to go" [X Link](https://x.com/recostseg/status/1867600870462140593) 2024-12-13T16:02Z 51.3K followers, [----] engagements "Land and site improvements are still some of the best cost segregation items on our reports. We love earthwork stormwater landscaping hardscaping pools decks patios hot tubs fire places outdoor kitchens parking lots fences and more. Our cost seg engineers can assign a value to all of these components and then help you take standard or bonus depreciation on them for your specific property this year" [X Link](https://x.com/recostseg/status/1868691556833820684) 2024-12-16T16:16Z 51.3K followers, [----] engagements "What a lot of people get wrong: You don't just "get into" real estate. It takes a lot of cash. Many of my clients fall into one of two camps: They run a company that generates cash or they raise money from people who do" [X Link](https://x.com/recostseg/status/1871226258593591707) 2024-12-23T16:08Z 51.3K followers, [----] engagements "Too many entrepreneurs make good money each year but pay Uncle Sam 35-50% of it. It takes a long time to build a massive wealth snowball when 1/3 to 1/2 of your snow gets chopped off each year. Real estate can help with this. The best model I've seen is: [--]. Earn cashflow from entrepreneurship. [--]. Buy real estate as a "real estate professional." [--]. Book losses through bonus depreciation. [--]. End up with all cash and little to no tax. Your wealth snowball ends up a lot larger [--] years down the road when you make and keep your money in a more tax efficient way" [X Link](https://x.com/recostseg/status/1873766748513845658) 2024-12-30T16:23Z 51.3K followers, [----] engagements "Many of the most successful real estate owners aren't just passive" investors. They think about RE as an active business and they know the levers that they can use to raise rents reduce costs and increase NOI. They buy properties with a plan to add value but are also patient enough to allow father time to do his thing. They apply the SMB operator mindset to RE and thats why they continue to outperform" [X Link](https://x.com/recostseg/status/1874858441732435977) 2025-01-02T16:41Z 51.2K followers, [----] engagements "There are [--] scenarios that will qualify as material and you only need to meet one: *500 hours *Substantially all participation * [---] hrs and at least 1/2 *Significant participation *5/10 years *Personal service activity w participation in last [--] years *Continuous participation" [X Link](https://x.com/recostseg/status/1875195951394197736) 2025-01-03T15:02Z 51.2K followers, [---] engagements "If you've reached the end of this thread and your NGMI on RE pro there are a few more options: [--]. Buy RE for your business to operate out of [--]. Generate lots of passive income that you need to offset [--]. STR Loophole" [X Link](https://x.com/recostseg/status/1875195962907668764) 2025-01-03T15:02Z 51.3K followers, [---] engagements "If RE Pro status is in your future congrats As always: [--]. Talk with your CPA before making any decisions [--]. Be mindful of Excess Business Loss rules [--]. Taking bonus depreciation early is a tax deferral not a tax savings. Recapture is real and debt must be repaid" [X Link](https://x.com/recostseg/status/1875195965638115784) 2025-01-03T15:02Z 51.2K followers, [---] engagements "As with all great tax hacks RE Pro requires consideration and planning but for the right person the juice is definitely worth the squeeze and you can defer a lot of taxes through this strategy" [X Link](https://x.com/recostseg/status/1875195968267923684) 2025-01-03T15:02Z 51.2K followers, [---] engagements "In [----] one of our clients built a single family rental in California for $8.1M. After completing a cost seg they saved over $660K in first year taxes. Details below:" [X Link](https://x.com/recostseg/status/1876282405897883886) 2025-01-06T14:59Z 51.2K followers, [----] engagements "If the client never completed a cost seg with us they would have missed out on over $500K in first year tax savings:" [X Link](https://x.com/recostseg/status/1876282407814365253) 2025-01-06T14:59Z 51.2K followers, [----] engagements "After virtually touring the property our engineers were able to assign [--] [--] or [--] year useful lifespans to all components of their property:" [X Link](https://x.com/recostseg/status/1876282410100474360) 2025-01-06T14:59Z 51.2K followers, [----] engagements "Which led to a massive $660K+ in first year tax savings:" [X Link](https://x.com/recostseg/status/1876282412780671380) 2025-01-06T14:59Z 51.2K followers, [----] engagements "There are several different types of income in the US tax code. Two main types are active income and passive income". Active income is money you earn from working such as wages from a W-2 job or income from running a business. Passive income is money you earn from investments like real estate stocks or rental income from your RE portfolio where you earn $ without actively working. Normally you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job. That is unless you are an RE Pro. The reality is that Real Estate Pro status" [X Link](https://x.com/recostseg/status/1876661825431019900) 2025-01-07T16:07Z 51.2K followers, [----] engagements "Newton's law of tax: What goes down must come up. Everyone enjoys the sweet benefits of bonus depreciation but what happens when you sell A post on recapture. People are concerned about recapture when they cost segregate their improvements and for good reason. Recapture is real and those deferred taxes will need to be paid. But fear not If you think ahead you can minimize recapture with the right tax planning. So what is recapture Basically there's no free lunch when it comes to taxes. Depreciating property lowers your tax basis. When you go to sell you're subject to tax on the amount of" [X Link](https://x.com/recostseg/status/1880299797493563751) 2025-01-17T17:03Z 51.2K followers, [----] engagements "The simple explanation of "bonus depreciation" and how real estate investors make millions while paying little to no taxes:" [X Link](https://x.com/recostseg/status/1881731518265176341) 2025-01-21T15:52Z 51.2K followers, 46.5K engagements "If you do a cost seg and take bonus depreciation now and then you sell your property for a large gain in the future you might need to pay what's called "recapture" taxes. This is common with real estate. It's typically not a big deal but it's important to consider this with your CPA before you sell" [X Link](https://x.com/recostseg/status/1884988190013939901) 2025-01-30T15:33Z 51.2K followers, [----] engagements "One of our clients deferred $95563 in taxes. Heres how: They acquired a [-----] square foot warehouse used as a storage facility rental for $879000. The law doesnt allow them to deduct the full $879K against their taxes in year [--] so my team had to figure out the useful lifespan of each component of their property in order to maximize their tax deduction via bonus depreciation. For example a countertop has a [--] year lifespan HVAC has a [--] year lifespan and various land improvements like sidewalks fencing and parking lots have a [--] year lifespan. After virtually touring the property and itemizing" [X Link](https://x.com/recostseg/status/1886802897243136402) 2025-02-04T15:44Z 50.9K followers, [----] engagements "Death and taxes. The two facts of life. Except for real estate investors who buy cost seg [----] exchange into another property and when they die their properties step up in basis to their heirs. Income taxes can technically be deferred forever for RE investors" [X Link](https://x.com/recostseg/status/1895505993821573326) 2025-02-28T16:07Z 51.1K followers, [----] engagements "What a lot of people get wrong: You don't just "get into" real estate. It takes a lot of cash. Many of my clients fall into one of two camps: They run a company that generates cash or they raise money from people who do" [X Link](https://x.com/recostseg/status/1904918232206581809) 2025-03-26T15:27Z 51K followers, [----] engagements "Too many entrepreneurs make good money each year but pay Uncle Sam 35-50% of it. It takes a long time to build a massive wealth snowball when 1/3 to 1/2 of your snow gets chopped off each year. Real estate can help with this. The best model I've seen is: [--]. Earn cashflow from entrepreneurship. [--]. Buy real estate as a "real estate professional." [--]. Book losses through bonus depreciation. [--]. End up with all cash and little to no tax. Your wealth snowball ends up a lot larger [--] years down the road when you make and keep your money in a more tax efficient way" [X Link](https://x.com/recostseg/status/1907800505734049987) 2025-04-03T14:21Z 51K followers, [----] engagements "One of our clients deferred $95563 in taxes. Heres how: They acquired a [-----] square foot warehouse used as a storage facility rental for $879000. The law doesnt allow them to deduct the full $879K against their taxes in year [--] so my team had to figure out the useful lifespan of each component of their property in order to maximize their tax deduction via bonus depreciation. For example a countertop has a [--] year lifespan HVAC has a [--] year lifespan and various land improvements like sidewalks fencing and parking lots have a [--] year lifespan. After virtually touring the property and itemizing" [X Link](https://x.com/recostseg/status/1920117668981391592) 2025-05-07T14:05Z 50.9K followers, [----] engagements "When thinking about depreciation it's not about when you buy the property it is when you "put it into service." When you buy determines your short/long term capital gains. The "in-service" date = The point in time when you can start taking depreciation from" [X Link](https://x.com/recostseg/status/1928466680742850793) 2025-05-30T15:01Z 50.9K followers, [----] engagements "If you used $7M of bank debt and only $3M of equity your year [--] deduction could equal the amount of money you put into the deal If you had used cash for the full $10M you would get a deduction worth 30% of your investment. (remember more debt = more risk)" [X Link](https://x.com/recostseg/status/1932458553643536700) 2025-06-10T15:23Z 50.9K followers, [---] engagements "Lever [--] = % Tax Rate Another HUGE consideration. Depreciation is a deduction that you are allowed to take at your Marginal Tax Rate. Similar to a 401k part of the strategy is a tax arbitrage. It is a much better outcome to take the deduction at 37% rather than 24%" [X Link](https://x.com/recostseg/status/1932458556567220646) 2025-06-10T15:23Z 50.9K followers, [---] engagements "A client of ours: Passively owns a stake in a business generating pretty substantial profits for him each year. He then buys real estate most years and gets a big chunk of bonus depreciation. When he does this he ends up paying very little taxes. The ability to compound wealth by using this strategy is pretty magical. SMB + RE is a phenomenal way to go" [X Link](https://x.com/recostseg/status/1934991423687868592) 2025-06-17T15:08Z 50.9K followers, [----] engagements "Land and site improvements are still some of the best cost segregation items on our reports. We love earthwork stormwater landscaping hardscaping pools decks patios hot tubs fire places outdoor kitchens parking lots fences and more. Our cost seg engineers can assign a value to all of these components and then help you take standard or bonus depreciation on them for your specific property this year" [X Link](https://x.com/recostseg/status/1935370170811232320) 2025-06-18T16:13Z 50.9K followers, [----] engagements "Too many entrepreneurs make good money each year but pay Uncle Sam 35-50% of it. It takes a long time to build a massive wealth snowball when 1/3 to 1/2 of your snow gets chopped off each year. Real estate can help with this. The best model I've seen is: [--]. Earn cashflow from entrepreneurship. [--]. Buy real estate as a "real estate professional." [--]. Book losses through bonus depreciation. [--]. End up with all cash and little to no tax. Your wealth snowball ends up a lot larger [--] years down the road when you make and keep your money in a more tax efficient way" [X Link](https://x.com/recostseg/status/1940819073723449704) 2025-07-03T17:05Z 50.9K followers, [----] engagements "Q1: Are you in the right business A real estate pro is spending their time in real property business. Builders house flippers brokers etc. Unfortunately banking and finance services and certain architect and engineering services don't qualify. This includes cost seg pros" [X Link](https://x.com/recostseg/status/1942590463858426198) 2025-07-08T14:23Z 50.9K followers, [---] engagements "Q2: Are you an equity owner This trips a lot of people up. You must own at least 5% equity in the qualifying business. Working a W-2 job at construction company =/= RE PRO Owning a construction company == possibly an RE Pro" [X Link](https://x.com/recostseg/status/1942590466756661669) 2025-07-08T14:23Z 50.9K followers, [---] engagements "The playbook on how to use real estate to build wealth tax efficiently: [--]. Buy with moderate leverage [--]. Cost segregate and depreciate initial capital in [--]. Stabilize and borrow tax free against your asset [--]. Enjoy low tax cashflow year over year [--]. Eventually [----] exchange into a larger asset and repeat [--]. Die and step up basis [--]. Have your heirs repeat Many wealthy families do this over and over again and pay little to no taxes as their RE portfolio continues to grow" [X Link](https://x.com/recostseg/status/1945876154357072145) 2025-07-17T16:00Z 50.9K followers, [----] engagements "Newton's law of tax: What goes down must come up. Everyone enjoys the sweet benefits of bonus depreciation but what happens when you sell A post on recapture. People are concerned about recapture when they cost segregate their improvements and for good reason. Recapture is real and those deferred taxes will need to be paid. But fear not If you think ahead you can minimize recapture with the right tax planning. So what is recapture Basically there's no free lunch when it comes to taxes. Depreciating property lowers your tax basis. When you go to sell you're subject to tax on the amount of" [X Link](https://x.com/recostseg/status/1947319315595972914) 2025-07-21T15:34Z 50.9K followers, [----] engagements "Depreciation is the act of slowly over time deducting the initial expense of a real estate purchase against your taxable income. Generally over a [----] (residential) or [--] (commercial) yr time frame. So each year you can deduct 2-3.6% of the purchase $ against your income" [X Link](https://x.com/recostseg/status/1947661904970657958) 2025-07-22T14:15Z 50.9K followers, [---] engagements "But some items can be depreciated on a quicker timeline. A roof road sidewalk fencing walls gates doors latches flooring air conditioners pavers curbing landscaping etc. The IRS has a depreciation schedule for each type. Some parts are [--] yrs. Others [--] or [--] years" [X Link](https://x.com/recostseg/status/1947661907302793275) 2025-07-22T14:15Z 50.9K followers, [---] engagements "Bonus depreciation allows you to deduct a certain percentage of cost in the first year an asset is put into service. Anything that is on a schedule of [--] years or less. So the doors sidewalks HVAC walls latches curbs security gates etc A % of this stuff goes in Yr 1" [X Link](https://x.com/recostseg/status/1947661912537239968) 2025-07-22T14:16Z 50.9K followers, [--] engagements "You pay for an engineered study (Our company does them quickly and affordably) and it lays out your depreciation schedule. Engineers go through your asset and lay out the proportion of the purchase price applied to each component of the building (windows landscaping etc)" [X Link](https://x.com/recostseg/status/1947661914902770126) 2025-07-22T14:16Z 50.9K followers, [--] engagements "One of the most common questions we get: Which jobs have the potential to qualify me as a Real Estate Professional Heres the answer: To qualify as a Real Estate Professional (RE Pro) in [----] you need to meet certain criteria set forth by the IRS. Here are some of the key requirements: [--]. Material Participation in a Real Estate Trade or Business. This is pretty straightforward but you must materially participate in a real property trade or business such as development redevelopment construction reconstruction acquisition conversion rental operation management leasing or brokerage. [--]. Time" [X Link](https://x.com/recostseg/status/1948428464413180364) 2025-07-24T17:02Z 50.9K followers, [----] engagements "Its not what you make its what you keep Our team at RE Cost Seg has helped thousands of real estate owners and investors save a lot of $$$ on taxes. Here's a framework that you should know for tax planning:" [X Link](https://x.com/recostseg/status/1949862844184309853) 2025-07-28T16:01Z 50.9K followers, [----] engagements "The further you can push your taxes out the smaller they become. The time value of money shows us that a dollar is worth more today than [--] years from now. Planning is used to kick the can down the road and make sure there will be available cash to pay the tax" [X Link](https://x.com/recostseg/status/1949862846742806602) 2025-07-28T16:01Z 50.9K followers, [--] engagements "The #1 way real estate investors defer taxes to later dates is with a system called depreciation and bonus depreciation. Which is where our team can help:" [X Link](https://x.com/recostseg/status/1949862850056298734) 2025-07-28T16:01Z 50.9K followers, [--] engagements "But other items can be depreciated on a quicker timeline. A roof road sidewalk fencing walls gates doors latches flooring air conditioners pavers curbing landscaping etc. The IRS has a depreciation schedule for each type. Some parts are [--] yrs. Others [--] yrs etc" [X Link](https://x.com/recostseg/status/1949862858189107583) 2025-07-28T16:01Z 50.9K followers, [--] engagements "So we depreciate a portion of the asset costs faster. We do the study and get dollar amounts assigned to different parts and different schedules to front-load depreciation. Now you can get [--] or 6% of the value as a deduction in the early years. But wait. there's more" [X Link](https://x.com/recostseg/status/1949862860940624212) 2025-07-28T16:01Z 50.9K followers, [--] engagements "The bonus depreciation rate in [----] is 100%. It's not uncommon to allocate 30% of an asset's cost to items that can be depreciated on a [--] year or faster time frame. So now 100% of that 30% can be depreciated in the first year excluding land" [X Link](https://x.com/recostseg/status/1949862866028319131) 2025-07-28T16:01Z 50.9K followers, [--] engagements Limited data mode. Full metrics available with subscription: lunarcrush.com/pricing
@recostseg Melanie Baldridge
Melanie Baldridge posts on X about money, cash flow, if you, investment the most. They currently have [------] followers and [---] posts still getting attention that total [-----] engagements in the last [--] hours.
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CreatorRank: undefined #
Social Influence
Social category influence finance countries
Social topic influence money, cash flow, if you, investment, savings, debt, business, compound, $1m, playbook
Top assets mentioned Gains (GAINS)
Top Social Posts
Top posts by engagements in the last [--] hours
"I know a bunch of real estate investors who make $1-2 million a year in free cashflow who haven't paid income taxes in years. Zero tax liability. They buy a building or two every year do a cost seg bonus depreciate a big chunk shield their income. America is wonderful 🗽"
X Link 2023-06-28T19:52Z 48.1K followers, [---] engagements
"Site improvements are some of the best cost segregation items on our reports. I LOVE earthwork stormwater landscaping hardscaping pools decks patios hot tubs fire places outdoor kitchens. At least those $$$ line items will net you a huge up front savings"
X Link 2023-07-01T21:43Z 48.1K followers, [--] engagements
"There is no other asset class like REAL ESTATE Any normal person can: - buy with leverage - add value and watch it appreciate - depreciate basis - cash flow - cash out refi - [----] and defer gains - step up basis at death - do it all over again"
X Link 2023-07-05T00:58Z 51.3K followers, 24.6K engagements
"One of the most common questions we get from RE investors - What is the best asset class for cost seg and bonus The answer - Dont let the tax tail wag the dog Find the best deals you can that are in your wheelhouse and execute. The other answer is gas stations ⛽"
X Link 2023-07-13T16:14Z 48.2K followers, 22.4K engagements
"The STR TLDR: [--]. Your STR must have [--] night average stay to qualify as a business rather than passive RE. [--]. You must materially participate in the business - You spent [---] Hours in the business - or - - You spent [---] hours and more than anyone else in the business"
X Link 2023-07-13T01:14Z 48.2K followers, 206.9K engagements
"Real estate investors developers and operators can make millions a year and pay almost nothing in TAXES by utilizing a loophole called Bonus Depreciation. A thread on how it works:"
X Link 2023-08-01T18:22Z 50.6K followers, 680.3K engagements
"One of my clients makes millions a year and pays virtually no income taxes. He is a real estate investor and owns a small business on the side that prints money. Cashflow from business + paper losses from real estate investment and cost segregation = all cash and no tax"
X Link 2023-08-08T13:18Z 48.1K followers, 86.3K engagements
"RE Cost Seg went over $2 million in total revenue today. I launched this company in June of [----]. Very thankful for this online community and your support I'm excited to save you all a lot of money over the years and I don't take this responsibility lightly. THANK YOU"
X Link 2023-08-10T17:21Z 48.1K followers, 67.5K engagements
"We've done a cost segregation study in every state except South Dakota. We're offering a free study to one of the real estate investors who replies here Anybody know one Tag them"
X Link 2023-08-13T14:48Z 40.3K followers, 28.2K engagements
"A common question we receive from clients is How much will I save in taxes this year if I buy real estate Here is a framework to think about how buying properties create the most tax efficiency for you. THE [--] LEVERS OF DEPRECIATION"
X Link 2023-08-15T16:33Z 48.1K followers, 292.1K engagements
"Lever [--] - % of Land One of the components of a property is land. Land is NOT DEDUCTIBLE so low value land properties mean more tax deduction. A value of your overall purchase will be assigned to the land or lot. You receive no near-term tax benefits for buying land"
X Link 2023-08-15T16:33Z 48.1K followers, 14.6K engagements
"Lever [--] (Bonus) - % Payback Ratio Ultimately how much you save vs. how much you pay matters. We pride ourselves @recostseg at being the best value on the market. We use virtual site visits on 90%+ of our projects to save time and money and our engineers produce great work"
X Link 2023-08-15T16:34Z 48.1K followers, [----] engagements
"Caveat - Talk to your CPA before you purchase a cost seg study. You need to have a way to monetize your losses through [--]. Being a Real Estate Pro [--]. Having Passive income you can offset [--]. Using the STR (or carwash etc.) Loophole Don't cost seg if you can't use the losses"
X Link 2023-08-15T16:34Z 48.2K followers, [----] engagements
"That's a wrap - Let us know if you have any questions. Reach out if you have bought any property since [----] that might be eligible for a cost seg"
X Link 2023-08-15T16:34Z 48.1K followers, 10.5K engagements
"REMINDER - @sweatystartup and @baldridgecpa are co-hosting a FREE real estate tax WEBINAR August [--]. We'll cover the tax strategies RE investors use to SAVE Topics: Cost segregation RE Pro status OZs 1031s Step-up in basis 45L Credits Sign up here:"
X Link 2023-08-16T02:29Z 48.1K followers, 28.5K engagements
"A client of mine: Passively owns a biz generating $1m+ in profit for him each year. Owns and buys real estate every year and gets a big chunk of bonus depreciation. Pays NOTHING in taxes each year. The ability to compound wealth this way over time is mind blowing"
X Link 2023-08-22T20:06Z 48.1K followers, 268.6K engagements
"@CicmilJovan He's a real estate professional (active real estate investor) and the depreciation from the assets offsets his cashflow gains"
X Link 2023-08-22T20:10Z 48.1K followers, 15.7K engagements
"A client bought a ranch (Short Term Rental) in [----] for $1.7 million. He never cost segregated or took bonus depreciation We found over $347k of bonus (year 1) depreciation. 20% of his purchase price We helped file Form [----] and took a $347k deduction THIS YEAR"
X Link 2023-09-07T17:27Z 48.1K followers, 212.1K engagements
"The tax lifecycle of real estate: [--]. Buy with leverage [--]. Cost segregate and depreciate initial capital in [--]. Stabilize and borrow tax free against asset [--]. Enjoy low tax cashflow year over year [--]. [----] exchange into larger asset repeat [--]. Die and step up basis [--]. Heirs repeat"
X Link 2023-09-11T16:01Z 48.1K followers, 253.9K engagements
"Most great businesses end up as real estate businesses - The playbook of our wealthiest clients: Cashflow from business - Invest in real estate - Depreciation & cost seg shields small biz income - End up with a lot of cash and very little tax"
X Link 2023-09-21T21:26Z 48.2K followers, 187.4K engagements
"More and more of our clients are starting to use our proposal tool during due-diligence on a property. We'll let you know exactly what you could expect in depreciation if you purchase and the cost of a study. Our clients use this in underwriting and while raising money for a deal. Why wouldn't you want to let investors know what they can expect in deductions Tax efficiency is a huge part of real estate. We love helping folks out here"
X Link 2023-10-09T18:05Z 42.5K followers, 52.6K engagements
"@sweatystartup We love to partner with our repeat clients on this. We work with buyers sellers and developers to help underwrite their deals"
X Link 2023-10-09T20:02Z 48.1K followers, [----] engagements
"Too many entrepreneurs make boatloads of money each year but pay uncle sam 50% of it. It takes a long time to build a massive wealth snowball when 50% of your snow gets lopped off each year. Real estate fixes this: Cashflow from entrepreneurship - Buy real estate as a "real estate professional"- Book losses through bonus depreciation - End up with all cash and no tax. The snowball ends up a lot larger [--] years down the road when the money is made in a tax efficient way"
X Link 2023-10-16T13:38Z 40.3K followers, 128K engagements
"Warning: If you depreciate a property down near zero and then have to sell your property at a loss during a situation of distress. You could end up giving all the proceeds to the bank AND owe the IRS a big chunk of money for recapture. Long term tax planning with real estate needs to be coupled with risk management and MAKING SURE YOU DON'T LOSE ANY PROPERTIES"
X Link 2023-10-24T14:24Z 40.5K followers, 14.8K engagements
"The tax advantages of buying / holding gas stations are massive. Gas stations are all [--] and [--] year property so you can bonus depreciate the whole thing (minus land value). A $1 million acquisition might mean a $800k deduction"
X Link 2023-10-24T14:26Z 40.7K followers, 68.6K engagements
"The golden rule of real estate: NEVER run out of money. Many of my clients would happily pay an 8% interest rate and stash that cash in short term treasuries at 5%. Sometimes paying millions a year in premiums to keep their cash liquid. No cash when you need it = game over"
X Link 2023-10-26T14:33Z 44.8K followers, 105.8K engagements
"I met an investor today worth $50 million +. He owns hundreds of millions worth of real estate with his partners and has been accumulating great assets for years. He didn't know that bonus depreciation existed. His CPA never sat him down after the [----] tax changes"
X Link 2023-10-31T14:38Z 41.6K followers, 124K engagements
"Many of my clients are making offers on real estate with zero leverage or 25% leverage. Three years ago they were making offers with 60-70% leverage and 30-40% equity. To buy a $10 million deal three years ago they used $3-4 million in cash. Today they're prepared to outlay $7.5 to $10 million in cash. Wild how things have changed"
X Link 2023-11-06T21:41Z 42.2K followers, 83.1K engagements
"Almost every mega-rich family owns and holds a lot of real estate for one main reason: Its the best way to compound wealth while giving virtually nothing to Uncle Sam"
X Link 2023-11-14T15:40Z 42.5K followers, 41.7K engagements
"The cash flow and appreciation aspects of real estate are phenomenal. The ability to utilize leverage to amplify your rewards is incredible. But the tax treatment makes it downright unbelievable"
X Link 2023-11-21T22:28Z 42.5K followers, [----] engagements
"The most important person on any real estate investor's team: CPA"
X Link 2023-11-23T23:28Z 42.5K followers, 12.7K engagements
"A Q for the semi-successful real estate folks out there: As a college grad would you rather start with Real estate private equity firm Developer Private landlord / operator Large REIT operator Construction management Brokerage Insurance Lending Large or small shop"
X Link 2023-11-29T18:29Z 44.7K followers, [----] engagements
"Real estate investors can make millions a year and pay almost nothing in TAXES by utilizing a loophole called Bonus Depreciation. A post on exactly how it works (and how you can utilize it): Depreciation is the act of slowly over time deducting the initial expense of an asset against your taxable income. Generally over a [----] (residential) or [--] (commercial) yr time frame. So each year you can write off 2-3.6% of the purchase price against your cashflow. That's a big deal. Example: My client bought a self storage facility for $3MM. For him this meant a $76k (2.5%) a year write off against"
X Link 2023-12-01T17:02Z 48.1K followers, 190.6K engagements
"The tax saving jackpot: A high W2 income earner or business owner married to a real estate professional. Cash from business / w2 + losses from real estate investment and cost segregation = all cash and no tax"
X Link 2023-12-06T19:41Z 50.7K followers, 262.7K engagements
"COST SEGREGATION: Cost segregation involves dividing a property into its individual components for tax purposes. Some parts age faster like carpets or paint. Your CPA can use this info to more accurately depreciate elements of your property leading to potential tax savings"
X Link 2023-12-11T20:26Z 44.8K followers, [----] engagements
"BASIS: Your basis is the initial price that you paid for your property including any expenses or improvements. Knowing your basis is crucial for tax purposes as it's used to evaluate depreciation & determine the capital gains or losses if/when your property sells"
X Link 2023-12-11T20:26Z 44.8K followers, [----] engagements
"Making $10m over a 5-year period and paying 1/2 in taxes means your net worth when you die is TENS OF MILLIONS smaller than being able to compound that $ over time without giving 40-50% to Uncle Sam. Real estate is the cheat code"
X Link 2023-12-13T00:34Z 44.9K followers, 11.2K engagements
"Death and taxes. The two facts of life. Except for real estate investors who buy cost seg die and step up in basis. Income taxes can technically be deferred forever"
X Link 2023-12-15T16:48Z [--] followers, 12.1K engagements
"@OliverSims No - you have until the tax return deadline"
X Link 2023-12-18T20:01Z 45.7K followers, [----] engagements
"@shawnwallard You can Amend your [----] tax return or file a [----] in 2023"
X Link 2023-12-18T20:37Z 45.7K followers, [----] engagements
"The tax saving jackpot: A high W2 income earner or business owner married to a real estate professional. Cash from business / w2 + losses from real estate investment and cost segregation = all cash and no tax"
X Link 2023-12-19T21:27Z 45.7K followers, 65.2K engagements
"REMINDER: There is no such thing as avoiding taxes all together. A tax deferral mechanism like cost segregation and depreciation is a future liability. You know that huge tax savings it delivers when you buy something You are kicking the can down the road. It comes back around through recapture when you sell. Even if you sell at a loss. It is a liability in your capital stack and you should be prepared to deal with it upon liquidation. Yes you can [----]. Yes you can die and step up the basis for your kids. But more likely youll owe a chunk of money to the government you didnt pay them earlier."
X Link 2023-12-20T15:49Z 45.7K followers, 30.3K engagements
"Hurry up and close your deal before the end of the year Bonus depreciation drops from 80% to 60% on January 1st at midnight. One of our clients is racing the clock right now and about $100k of tax deferral is on the line It'll be a fire drill for all involved"
X Link 2023-12-22T01:55Z 45.7K followers, [----] engagements
"@bhallcpa STRs get 25-35% of improvement value in our experience but it varies based on what we find when we evaluate the property. The purchase price is only one piece of the puzzle. This is our rundown of other factors to consider: A common question we receive from clients is How much will I save in taxes this year if I buy real estate Here is a framework to think about how buying properties create the most tax efficiency for you. THE [--] LEVERS OF DEPRECIATION A common question we receive from clients is How much will I save in taxes this year if I buy real estate Here is a framework to"
X Link 2024-01-03T21:45Z 48.1K followers, [---] engagements
"One of my clients: Runs a general contracting biz generating $1m+ in profit for him personally. Fixing up houses for clients with his Rolodex of contractors. He taxes the cashflow from that business and buys dilapidated real estate every year in the exact markets he runs his company in. He uses his business to fix it up then rents it out and gets a big chunk of bonus depreciation each year. His real estate holdings have surpassed his contracting business valuation by a long shot. Pays NOTHING in taxes each year"
X Link 2024-01-10T17:51Z 48.1K followers, 130.8K engagements
"@ChandlerReedSMB As long as this hypothetical person meets the IRS definition (pub 925) of a RE pro ☺. Its always best to check with your CPA - they are the ones that designate RE pro status when filing your tax return"
X Link 2024-01-10T20:01Z [--] followers, [----] engagements
"For all my friends feeling gloomy watching bonus depreciation step down to 60% this year. There are bipartisan proposals to restore three key provisions from Tax Cuts Jobs Act INCLUDING bonus depreciation. Excitement building for the potential of big [----] retroactive tax changes: bonus depreciation 163j (interest expense limitation) and R&D capitalization. There's the child tax credit too but if you care about the first three you probably don't care about the CTC. Excitement building for the potential of big [----] retroactive tax changes: bonus depreciation 163j (interest expense limitation)"
X Link 2024-01-10T21:09Z 48.1K followers, 18.9K engagements
"@Rudolph_Cos @coreyandj @baldridgecpa The key word here is own. To qualify you need at least 5% equity. Hold Co is a better option she meets all of the other IRS criteria"
X Link 2024-01-12T00:57Z [--] followers, [---] engagements
"Good news for real estate investors - Proposed legislation will (retroactively) extend bonus depreciation through [----] with 20% bonus starting in [----]. These regs proposed and still have a way to go"
X Link 2024-01-16T16:21Z 48.2K followers, 16.2K engagements
"The tax lifecycle of real estate: [--]. Buy with leverage [--]. Cost segregate and depreciate initial capital in [--]. Stabilize and borrow tax-free against asset [--]. Enjoy low tax cashflow year over year [--]. [----] exchange into a larger asset repeat [--]. Die and step up basis [--]. Heirs repeat"
X Link 2024-01-16T18:44Z [--] followers, 112.5K engagements
"Warning: If you depreciate a property down near zero and then have to sell your property at a loss during a situation of distress. You could end up giving all the proceeds to the bank AND owe the IRS a big chunk of money for recapture. Long-term tax planning with real estate needs to be coupled with risk management and MAKING SURE YOU DON'T LOSE ANY PROPERTIES"
X Link 2024-01-18T15:19Z 48.1K followers, 12.8K engagements
"Come learn the all cash no tax real estate playbook ANNOUNCEMENT 🚨 My friend @sweatystartup and I are hosting a webinar tomorrow Jan [--] at 1PM ET Real Estate Tax [---] We will run through the ins and outs of real estate and why it is one of the best tax incentivized investments out there Join us - https://t.co/ZTsJPtqyyX ANNOUNCEMENT 🚨 My friend @sweatystartup and I are hosting a webinar tomorrow Jan [--] at 1PM ET Real Estate Tax [---] We will run through the ins and outs of real estate and why it is one of the best tax incentivized investments out there Join us - https://t.co/ZTsJPtqyyX"
X Link 2024-01-21T19:09Z 47.9K followers, 34.4K engagements
"Too many entrepreneurs make boatloads of money each year but pay Uncle Sam 50% of it. It takes a long time to build a massive wealth snowball when 50% of your snow gets lopped off each year. Real estate fixes this: [--]. Cash flow from entrepreneurship [--]. Buy real estate as a "real estate professional" [--]. Book losses through bonus depreciation [--]. End up with all cash and no tax. The snowball ends up a lot larger [--] years down the road when the money is made in a tax-efficient way"
X Link 2024-01-24T21:10Z 47.9K followers, 19.2K engagements
"Real estate investors developers and operators can make millions a year and pay almost nothing in TAXES by utilizing Bonus Depreciation. A thread on how it works:"
X Link 2024-01-31T17:19Z 48.2K followers, 137.1K engagements
"So back to the $3MM property my client bought in [----]. The cost segregation study may show that 30% of the asset cost can be depreciated on a [--] yr or faster timeframe. This is 80% deductible THIS YEAR and if the Wyden Smith bill passes it is 100% deductible"
X Link 2024-01-31T17:19Z 48.2K followers, [----] engagements
"30% of $3MM is $900k. 80% of $900k as a tax deduction. In year [--]. The facility will produce about $260k in NOI and $200k in free cashflow after interest expense. So while $200k goes into the bank account the tax LOSS is $340k"
X Link 2024-01-31T17:19Z 48.2K followers, [----] engagements
"Investing as an LP in other peoples real estate deals is as close to passive as real estate gets. Doing the work to find operators you trust is hard work however. Trust is hard to find. When you build it cherish it"
X Link 2024-02-01T18:29Z 48.2K followers, [----] engagements
"The very best tax strategy to implement if you are not a real estate pro: Become a real estate pro"
X Link 2024-02-06T18:02Z 48.2K followers, 12.3K engagements
"Material participation is achieved by: [--]. Spending more than [---] hours in the business or [--]. Spending more than [---] hours and more than anyone else or substantially all the time in the business"
X Link 2024-02-12T18:08Z 48.2K followers, [---] engagements
"So if you own an STR and meet the test you can set up a tax deduction machine. Some issues: - You have to count your time and the time other people work in the biz (cleaning maintenance etc.) - If use the property more than [--] days or 10% of the time it becomes a residence"
X Link 2024-02-12T18:08Z 48.2K followers, [---] engagements
"The crazy thing about real estate is that one deal can change your life. One of my clients built a small business over 7+ years. Then they did their first real estate deal and made [--] years' worth of income with virtually none of the hassle they were used to"
X Link 2024-02-19T20:57Z 48.2K followers, 16.9K engagements
"I know many real estate investors who make $1 million per year in free cashflow and haven't paid income taxes in years. They either have zero or a near zero tax liability. They just buy a building or two every year do a cost seg bonus depreciate a big chunk and shield that income"
X Link 2024-02-22T16:09Z 48.2K followers, [---] engagements
"Everybody thinks you need a secret sauce to buy and operate real estate. Judging by my clientele its just hard work cashflow and common sense"
X Link 2024-02-22T16:23Z 48.3K followers, [----] engagements
"A lot of entrepreneurs make great money each year but pay uncle sam nearly 50% of it. As you can imagine it takes a long time to build a large wealth snowball when 50% of your snow gets chopped off each year. Real estate fixes this: The best model that Ive found is to cashflow from entrepreneurship - Buy real estate as a "real estate professional"- Book losses through bonus depreciation - End up with all cash and little to no tax. Your wealth snowball ends up a lot larger [--] years down the road when your money is made in a more tax efficient way"
X Link 2024-02-23T17:07Z 48.4K followers, 87.6K engagements
"Big news: Weve hired Zac Prince (BlockFi founder) as the new CEO of RE Cost Seg. Over the last [--] months we have: -Grown from 0-40 employees -Done $4M+ in revenue -Have sold more than [----] cost seg studies -Have worked with owners and investors who control more than $5BN in RE assets -And weve helped our clients defer more than $180M dollars in taxes This has been one of the best chapters of my career and I am so proud of the company we have built so fast Zac is extremely talented and coming on board to help take the company to the next level. I have transitioned to the role of COO and will"
X Link 2024-03-11T13:02Z 50.7K followers, 153.5K engagements
"@CaseyMericle @title_services Thanks Casey"
X Link 2024-03-13T22:26Z 49.7K followers, [--] engagements
"Real estate is one of the most tax advantaged investment strategies out there. Real estate pros buy property using leverage and bonus depreciate to perpetually defer taxes. Making millions a year and often paying $0 in taxes. Short Term Rentals supercharge this: RE pros use cost segregation and bonus depreciation combined with leverage to create massive losses with minimal cash. Combined with 1031s and snowballing you create a business that never pays tax. Problem is only "RE pros" get to do it. There are [--] income classifications in the US - Active Portfolio and Passive Active income is"
X Link 2024-03-15T17:40Z 49.8K followers, 37.5K engagements
"The tax benefits for RE pros in America are simply unmatched. I know many real estate investors who make significant free cashflow each year and haven't paid much or any income taxes in years. They just buy a building or two every year do a cost seg bonus depreciate a big chunk and shield that income. It's one of the greatest ways to protect and preserve wealth that I've ever seen"
X Link 2024-03-19T16:09Z 49.7K followers, 16.5K engagements
"If you do a cost seg and take bonus depreciation now and then you sell your property for a large gain in the future you might need to pay what's called "recapture" taxes. This is common with real estate. It's typically not a big deal but it's important to consider this with your CPA before you sell"
X Link 2024-03-22T19:41Z 50.8K followers, 11.3K engagements
"Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to Uncle Sam instead of compounding that cash over time. This is exactly what real estate professionals have learned to mitigate. To reduce their taxable income they just buy a building every year do a cost seg and use depreciation to reduce their tax liability dramatically. Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year. Following this strategy as a real estate professional is one"
X Link 2024-03-25T17:53Z 49.7K followers, 16.5K engagements
"Death and taxes. The two facts of life. Except for real estate investors who buy cost seg [----] exchange into another property and when they die their properties step up in basis to their heirs. Income taxes can technically be deferred forever for RE investors"
X Link 2024-03-28T17:17Z 49.7K followers, [----] engagements
"Great thread by one of our clients. This is a detailed breakdown of how he bought an AirBnB last year for $640K did a cost seg with us and was able to take a $184K tax deduction in year [--] via bonus depreciation. We bought an Airbnb last year that brought in over $135000 in revenue And we paid $0 in TAXES You can use the same methods we did for your Real Estate property too Heres how that works: 👇 We bought an Airbnb last year that brought in over $135000 in revenue And we paid $0 in TAXES You can use the same methods we did for your Real Estate property too Heres how that works: 👇"
X Link 2024-04-01T13:08Z 50.6K followers, 12.3K engagements
"One of our clients recently deferred $1393939 in taxes. Heres how: In [----] they acquired a [------] square foot industrial facility for $11200000. The law doesnt allow them to deduct the full $11200000 against their taxes in year [--] so my team had to figure out the useful lifespan of each component of their property in order to maximize their tax deduction. For example a countertop has a [--] year lifespan. Sidewalks fencing and parking lots have a [--] year lifespan. HVAC for a commercial property has a [--] year lifespan and so on. But bonus depreciation allows you to deduct a huge chunk of your [--] 7"
X Link 2024-04-03T17:39Z 49.8K followers, 13.8K engagements
"If you want to be a real estate pro you need to understand the TERMS: Here are a few definitions that you absolutely must know. Bookmark this thread and use it as your cheat sheet for [----]. Okay lets dive in:"
X Link 2024-04-08T16:24Z 50.4K followers, 203.1K engagements
"BONUS DEPRECIATION: This is an accelerated depreciation method. It allows a substantial portion of the asset's cost to be deducted in the first year of service. In [----] the bonus depreciation rate is 80%. In [----] it decreases to 60%. In [----] the rate further reduces to 40%"
X Link 2024-04-08T16:24Z 50.3K followers, [----] engagements
"COST SEGREGATION: Cost segregation involves dividing a property into its individual components for tax purposes. Some parts age faster like carpets or paint. Your CPA can use this info to more accurately depreciate elements of your property leading to potential tax savings"
X Link 2024-04-08T16:24Z 50.2K followers, [----] engagements
"The simple explanation of "bonus depreciation" and how real estate investors make millions while paying little to no taxes:"
X Link 2024-04-15T17:25Z 50.6K followers, 147.3K engagements
"Bonus Depreciation helps our clients defer millions in taxes. Cost seg studies unlock these savings but the losses won't offset your ordinary income from your job unless you are an RE Pro. Here's how to think about RE Pro status to make the best case with your CPA & the IRS:"
X Link 2024-04-26T17:25Z 50.6K followers, [----] engagements
"RE Pro Status starts with the IRS definition of a Real Estate Professional (IRS Pub 925). It is not as simple as getting a real estate license or working for a firm that provides real estate services. Ask yourself these questions to see if you qualify:"
X Link 2024-04-26T17:25Z 50.6K followers, [---] engagements
"If you've reached the end of this thread and your NGMI on RE pro there are a few more options: [--]. Buy RE for your business to operate out of [--]. Generate lots of passive income that you need to offset [--]. STR Loophole https://twitter.com/recostseg/status/1679283225900773381 The STR TLDR: [--]. Your STR must have [--] night average stay to qualify as a business rather than passive RE. [--]. You must materially participate in the business - You spent [---] Hours in the business - or - - You spent [---] hours and more than anyone else in the business https://t.co/Sb07WDyLMb"
X Link 2024-04-26T17:25Z 50.6K followers, [---] engagements
"If RE Pro status is in your future congrats As always: [--]. Talk with your CPA before making any decisions [--]. Be mindful of Excess Business Loss rules [--]. Taking bonus depreciation early is a tax deferral not a tax savings. Recapture is real and debt must be repaid"
X Link 2024-04-26T17:26Z 50.6K followers, [---] engagements
"@LorilynWilson If the property was purchased and placed in service in [----] then the property would be eligible for 100% bonus. You can amend the [----] tax return or file a [----] in [----] to catch up the bonus. Always happy to help if we can"
X Link 2024-05-09T17:28Z 50.7K followers, [----] engagements
"What a lot of people get wrong: You don't just "get into" real estate. It takes a lot of cash. Many of my clients fall into one of two camps: They run a company that generates cash or they raise money from people who do"
X Link 2024-05-10T18:38Z 50.7K followers, [----] engagements
"Last year Mitchell created one of the best real estate tax guides online and it's completely free. He spent 50+ hours on it to produce [----] words and [--] pages of insights for anyone who wants to learn. In the guide he covers depreciation deductions RE pro status [----] exchanges step-up in basis and a whole lot more. Just click the link enter your email and it will be sent to your inbox shortly. https://sweatystartup.ck.page/77b72edfdc https://sweatystartup.ck.page/77b72edfdc"
X Link 2024-05-17T16:56Z 50.7K followers, 12.1K engagements
"Too many entrepreneurs make good money each year but pay Uncle Sam 35-50% of it. It takes a long time to build a massive wealth snowball when 1/3 to 1/2 of your snow gets chopped off each year. Real estate can help with this. The best model I've seen is: [--]. Earn cashflow from entrepreneurship. [--]. Buy real estate as a "real estate professional". [--]. Book losses through bonus depreciation. [--]. End up with all cash and little to no tax. Your wealth snowball ends up a lot larger [--] years down the road when you make and keep your money in a more tax-efficient way"
X Link 2024-05-20T19:18Z 50.7K followers, 10.1K engagements
"One of our clients deferred $257972 in taxes. Heres how: In [----] they acquired a [----] square foot retail unit that houses a restaurant for $1714580. The law doesnt allow them to deduct the full $1714580 against their taxes in year [--] so my team had to figure out the useful lifespan of each component of their property in order to maximize their potential tax deduction. For example a countertop has a [--] year lifespan. HVAC for a commercial property has a [--] year lifespan. The external parking area has a [--] year life span and so on. Their goal was to use bonus depreciation to deduct a large chunk"
X Link 2024-05-22T17:02Z 50.7K followers, [----] engagements
"There are several different types of income in the US tax code. Two main types are active income and passive income". Active income is money you earn from working such as wages from a W-2 job or income from running a business. Passive income is money you earn from investments like real estate stocks or rental income from your RE portfolio where you earn $ without actively working. Normally you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job. That is unless you are an RE Pro. The reality is that Real Estate Pro status"
X Link 2024-05-23T18:15Z 50.7K followers, [----] engagements
"There is a unique tax deduction in the US called a conservation easement. It was designed by the IRS to encourage real estate owners to make pristine land that could be enjoyed by the public a conservation ground and thus un-developable. In return the landowner could treat the act of granting a conservation easement as tax-deductible. It would be similar to a charitable gift. In a conservation easement a real estate investor donates development rights on a piece of property to a qualified charity public agency or land conservatory. In return for the donation they get a tax deduction as if"
X Link 2024-05-24T16:25Z 50.7K followers, [----] engagements
"The tax benefits for RE Pros in America are incredible. I know many real estate investors who make significant free cashflow each year and haven't paid much or any income taxes in years. They just buy a building or two every year do a cost seg bonus depreciate a big chunk and shield that income. It's still one of the greatest ways to protect and preserve wealth that I've seen"
X Link 2024-06-07T18:21Z 50.7K followers, [----] engagements
"If you think about your career and your journey to build wealth over a long time horizon this is still the strategy that I like most: [--]. Start a business that produces cashflow. [--]. Use your personal cashflow to buy or invest in real estate that produces more cashflow and has other great tax benefits. [--]. Reinvest whatever money you save on taxes via depreciation back into more real estate or property improvements to continue increasing the size and quality of your portfolio. [--]. Occasionally sell and [----] into more attractive assets. [--]. WAIT as long as you can and don't die. This is easier said"
X Link 2024-06-13T15:07Z 50.7K followers, [----] engagements
"Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to Uncle Sam instead of compounding that cash over time. This is exactly what real estate professionals have learned to mitigate. To reduce their taxable income they just buy a building every year do a cost seg and use depreciation to reduce their tax liability dramatically. Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year. Following this strategy as a real estate professional is one"
X Link 2024-06-18T16:49Z 50.7K followers, 31.7K engagements
"Death and taxes. The two facts of life. Except for real estate investors who buy cost seg [----] exchange into another property and when they die their properties step up in basis to their heirs. Income taxes can technically be deferred forever for RE investors"
X Link 2024-06-19T20:57Z 50.7K followers, [----] engagements
"If you want to be a real estate pro you need to understand the TERMS. Here are a few definitions that you absolutely must know: -DEPRECIATION -BONUS DEPRECIATION -COST SEGREGATION -BASIS -LAND VALUE -IMPROVEMENT VALUE [-----] -RECAPTURE DEPRECIATION: Depreciation is the decrease in $$ value of your asset over time due to wear & tear etc. Standard depreciation is deducted evenly over [----] years for residential and [--] years for commercial. Even w/o cost segregation you get to deduct depreciation each year. BONUS DEPRECIATION: This is an accelerated depreciation method. It allows a substantial"
X Link 2024-06-20T17:49Z 50.7K followers, [----] engagements
"The cashflow and appreciation aspects of real estate are phenomenal. But it's the tax advantages of real estate that truly make it the investment of choice for some of the wealthiest families and investors in the world"
X Link 2024-06-21T16:44Z 50.7K followers, [----] engagements
"Why I like investing in real estate more than 401(k)s. Both offer tax deferrals but here's the difference: If you're making pre-tax contributions to your 401(k) then withdrawals = ordinary income tax. With real estate gains you're paying capital gains tax (which is typically lower). Plus RE investors get: [--]. Cash flow from their properties [--]. The ability to do cost segregation and bonus depreciation [--]. The ability to use leverage to acquire more attractive assets and amplify their potential gains [--]. A physical property that has real-world use and value vs. holding stocks and bonds [--]. The"
X Link 2024-06-28T18:22Z 50.7K followers, [----] engagements
"A common question we receive from clients is How much will I save in taxes this year if I buy real estate Here is a framework to think about how buying properties create the most tax efficiency for you. THE [--] LEVERS OF DEPRECIATION"
X Link 2024-07-01T18:18Z 50.8K followers, 156.2K engagements
"Lever [--] - % of Land One of the components of a property is land. Land is NOT DEDUCTIBLE so low value land properties mean more tax deduction. A value of your overall purchase will be assigned to the land or lot. You receive no near-term tax benefits for buying land"
X Link 2024-07-01T18:18Z 50.8K followers, [----] engagements
"Lever [--] - % Tax Rate Another HUGE consideration. Depreciation is a deduction that you are allowed to take at your Marginal Tax Rate. Similar to a 401k part of the strategy is a tax arbitrage. It is a much better outcome to take the deduction at 37% rather than 24%"
X Link 2024-07-01T18:18Z 50.8K followers, [----] engagements
"Lever [--] - % Bonus Allowed In [----] Bonus depreciation has been limited to 60% and will continue to ramp down 20%/yr until it hits zero in [----]. Bonus depreciation has come and gone in the past but the more you get that first year payback is higher and higher"
X Link 2024-07-01T18:18Z 50.8K followers, [----] engagements
"This is the simple playbook that tons of Americans have used to build wealth over the last [--] decades: [--]. Earn free cashflow from their business. [--]. Invest their personal profits into real estate. [--]. Do a cost seg study and take bonus depreciation to offset other income. (This works best when you or your spouse are RE pros) [--]. End up with a lot of cash and little to no tax each year. [--]. Make more money buy more buildings and repeat. These folks have compounded their wealth significantly faster than their W2 counterparts since they don't lose 30-50% to taxes each year"
X Link 2024-07-03T16:00Z 50.8K followers, [----] engagements
"Happy July 4th to our CRE community I hope everyone gets to see some fireworks tonight :)"
X Link 2024-07-04T14:23Z 50.8K followers, [----] engagements
"Limited partners or investors in real estate deals can absolutely benefit from depreciation. RE Pro Status supercharges this. If you or your spouse are an RE Pro your LP investments can lead to depreciation offsetting both passive and active income. If you are not an RE Pro the losses due to depreciation can only be used to offset passive incomesuch as income from other rental properties or other passive investments"
X Link 2024-07-11T18:05Z 50.8K followers, [----] engagements
"What a lot of people get wrong: You don't just "get into" real estate. It takes a lot of cash. Many of my clients fall into one of two camps: They either run a company that generates cash or they raise money from people who do"
X Link 2024-07-17T17:19Z 50.8K followers, [----] engagements
"@moseskagan Thanks Moses We're excited for folks to use and get value from this. Anyone who is interested can try it here: http://recostseg.com/depreciation-calculator http://recostseg.com/depreciation-calculator"
X Link 2024-07-25T15:53Z 50.7K followers, [---] engagements
"Many of the most successful real estate owners aren't just passive" investors. They think about RE as an active business and they know the levers that they can use to raise rents reduce costs and increase NOI. They buy properties with a plan to add value but are also patient enough to allow father time to do his thing. They apply the SMB operator mindset to RE and thats why they continue to outperform"
X Link 2024-07-26T17:43Z 51.4K followers, [----] engagements
"To qualify as an RE Pro you must: [--]. Spend more than half of your total working hours in an RE business in which you materially participate. [--]. You must work at least [---] hours per year in a qualified RE business. So most people who have high-earning W-2 jobs outside of real estate won't qualify. But the unique thing about RE pro status is that even if you dont qualify but your spouse does you can both file jointly and claim the losses from your RE investments to offset your other active income together. It's an incredibly powerful benefit if you do meet the criteria"
X Link 2024-08-06T17:07Z 50.7K followers, 96.2K engagements
"The playbook on how to use real estate to build wealth tax efficiently: [--]. Buy with moderate leverage [--]. Cost segregate and depreciate initial capital in [--]. Stabilize and borrow tax free against your asset [--]. Enjoy low tax cashflow year over year [--]. Eventually [----] exchange into a larger asset and repeat [--]. Die and step up basis [--]. Have your heirs repeat Many wealthy families do this over and over again and pay little to no taxes as their RE portfolio continues to grow"
X Link 2024-08-08T19:18Z 51.6K followers, 12.9K engagements
"Understanding your depreciable basis: Imagine you bought a property for $2M. The land (excluding any structures) is valued at $400K. Since land is not depreciable in the eyes of the IRS we subtract the land value from your purchase price to get your depreciable basis. Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either [--] [--] or [--] year property. In the scenario above your starting basis would be $1.6M since your basis = your purchase price - the land value. Having an accurate land value is essential to getting your"
X Link 2024-08-09T16:44Z 51.6K followers, 10.3K engagements
"Thank you Moses We've done cost seg studies on 2500+ properties and counting. STRs storage facilities apartment complexes shopping centers gas stations office buildings restaurants hotels and more. We'll happily cost seg properties and portfolios of any size. We're also excited to see everyone at Reconvene next month. We promise that the coffee and conversation is going to be good Writing to recommend RE Cost Seg for commercial real estate cost segregations. They did a study on a small building my folks intend to own forever; service was excellent and my folks' CPA was so impressed with the"
X Link 2024-08-12T16:57Z 51.6K followers, 11.7K engagements
"There is a unique tax deduction in the US called a conservation easement. It was designed by the IRS to encourage real estate owners to make pristine land that could be enjoyed by the public a conservation ground and thus un-developable. In return the landowner could treat the act of granting a conservation easement as tax-deductible. It would be similar to a charitable gift. In a conservation easement a real estate investor donates development rights on a piece of property to a qualified charity public agency or land conservatory. In return for the donation they get a tax deduction as if"
X Link 2024-08-14T17:51Z 51.6K followers, [----] engagements
"Newton's law of tax: What goes down must come up. Everyone enjoys the sweet benefits of bonus depreciation but what happens when you sell A post on RECAPTURE: People are concerned about recapture when they cost segregate their improvements and for good reason. Recapture is real and those deferred taxes will need to be paid. But fear not If you think ahead you can minimize recapture with the right tax planning. So. What is recapture Basically there's no free lunch when it comes to taxes. Depreciating property lowers your tax basis. When you go to sell you're subject to tax on the amount of"
X Link 2024-08-16T15:36Z 51.6K followers, 70.8K engagements
"As always DYOR and talk with your CPA. Please drop any Qs in the comments. I'm tagging in experts on some of these areas as well. CPAS @baldridgecpa & @rledbetterCPA [----] @1031Specialists and @1031ExchangeRE OZ @DallasAptGP"
X Link 2024-08-16T15:36Z 51.6K followers, [----] engagements
"The tax benefits for RE Pros in America are incredible. I know many real estate investors who make significant free cashflow each year and haven't paid much or any income tax in years. They just buy a building or two every year do a cost seg bonus depreciate a big chunk and then offset that income. It's still one of the greatest ways to protect and preserve wealth that I've seen"
X Link 2024-08-23T17:37Z 51.6K followers, [----] engagements
"If you think about your career and your journey to build wealth over a long time horizon this is still the strategy that I like most: [--]. Start a business that produces cashflow. [--]. Use your personal cashflow to buy or invest in real estate that produces more cashflow and has other great tax benefits. [--]. Reinvest whatever money you save on taxes via depreciation back into more real estate or property improvements to continue increasing the size and quality of your portfolio. [--]. Occasionally sell and [----] into more attractive assets. [--]. WAIT as long as you can and don't die. This is easier said"
X Link 2024-08-28T13:53Z 51.6K followers, [----] engagements
"Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to Uncle Sam instead of compounding that cash over time. This is exactly what real estate professionals have learned to mitigate. To reduce their taxable income they just buy a building every year do a cost seg and use depreciation to reduce their tax liability dramatically. Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year. Following this strategy as a real estate professional is one"
X Link 2024-08-30T14:12Z 51.6K followers, [----] engagements
"The cashflow and appreciation aspects of real estate are phenomenal. The ability to utilize leverage to amplify your gains is also incredible. But it's the tax advantages of real estate that truly make it the investment of choice for some of the most wealthy families and investors in the world"
X Link 2024-09-06T16:16Z 51.3K followers, [----] engagements
"When thinking about depreciation it's not about when you buy the property it is when you "put it into service." When you buy determines your short/long term capital gains. The "in-service" date = The point in time when you can start taking depreciation from"
X Link 2024-09-10T16:05Z 51.6K followers, [----] engagements
"Why I like investing in real estate more than 401(k)s. Both offer tax deferrals but here's the difference: If you're making pre-tax contributions to your 401(k) then withdrawals = ordinary income tax. With real estate gains you're paying capital gains tax (which is typically lower). Plus RE investors get: [--]. Cash flow from their properties [--]. The ability to do cost segregation and bonus depreciation [--]. The ability to use leverage to acquire more attractive assets and amplify their potential gains [--]. A physical property that has real-world use and value vs. holding stocks and bonds [--]. The"
X Link 2024-09-11T17:56Z 51.6K followers, [----] engagements
"Lever [--] = % of the property with a shorter useful life. Not all parts of a piece of real estate are depreciated at the same speed. Certain personal property assets have SHORTER lifespans in the eyes of the IRS vs the standard 27.5/39 year lives. This means bonus depreciation"
X Link 2024-09-13T17:17Z 51.6K followers, [---] engagements
"Properties with tons of this often have: - Over-developed land sites (hardscaping pools retaining walls) - Fancy Fixtures - Fancy Furniture (STRs) - Lots of Equipment (R&D Facilities Car Washes) - Gas Stations (100% [--] year properties) - Movable walls (self storage)"
X Link 2024-09-13T17:17Z 51.6K followers, [---] engagements
"The tax benefits of bonus depreciation can lead to massive savings but losses wont help you one bit if you cant use them. Before you buy a cost seg you need to know the rules:"
X Link 2024-09-27T16:24Z 51.6K followers, 51.6K engagements
"Tax all starts with the types of income. Active = Income earned from Material Participation. Whether that's SMB W-2 contract income or prof real estate. This is income where ordinary tax is paid and losses offset other income. Other sources have certain loss limitations"
X Link 2024-09-27T16:24Z 51.6K followers, [----] engagements
"Portfolio = Income derived from financial instruments like dividends interest royalties and capital gains. Mostly income w/out loss potential and favorable tax rates. Cap losses may offset cap gains with up to a $3000 loss. Investment interest can be deductible"
X Link 2024-09-27T16:24Z 51.6K followers, [----] engagements
"Passive income which sec [---] defines as: [--]. Income from a trade or business where a taxpayer doesnt materially participate. [--]. Rental activity. Passive losses may only offset passive income not active or portfolio"
X Link 2024-09-27T16:24Z 51.6K followers, [---] engagements
"This is a problem for wage-earning real estate investors. So HOW DO I GET THOSE DEDUCTIONS Become a Material Participant. We are given a clear framework for determining Material Participation (not passive) in Pub [---]. There are [--] scenarios that will get you there"
X Link 2024-09-27T16:24Z 51.6K followers, [---] engagements
"As well as: [--]. You materially participated in the activity for any [--] of the last [--] tax years [--]. Personal service activity w participation in last [--] years [--]. Continuous participation"
X Link 2024-09-27T16:24Z 51.6K followers, [---] engagements
"This is great if you are talking about an SMB with effectively connected Real Estate. Note rental activity is considered passive unless you meet the RE Pro threshold of [---] hours and more than 1/2 your time. This is the conundrum for passive real estate investors"
X Link 2024-09-27T16:24Z 51.6K followers, [---] engagements
"One pitfall of a RE Pro spouse if you are full-time W-2. Mind Excess Business Loss Rules. You can only offset W-2 income with $610K in [----]. For single filers the limit is $305K"
X Link 2024-09-27T16:25Z 51.6K followers, [---] engagements
"2. Run an Opco/Propco model. If your business utilizes real estate as part of ongoing operations you can get all the tax benefits of active RE by having the building purchase and hold the RE"
X Link 2024-09-27T16:25Z 51.6K followers, [---] engagements
"3. Build an SMB on top of your real estate (the reverse of #2) Short-term rentals and high owner-participation real estate businesses can have great returns. Obviously not for you if you just want passive RE"
X Link 2024-09-27T16:25Z 51.6K followers, [----] engagements
"Too many entrepreneurs make good money each year but pay Uncle Sam 35-50% of it. It takes a long time to build a massive wealth snowball when 1/3 to 1/2 of your snow gets chopped off each year. Real estate can help with this. The best model I've seen is: [--]. Earn cashflow from entrepreneurship. [--]. Buy real estate as a "real estate professional." [--]. Book losses through bonus depreciation. [--]. End up with all cash and little to no tax. Your wealth snowball ends up a lot larger [--] years down the road when you make and keep your money in a more tax efficient way"
X Link 2024-10-08T16:48Z 51.6K followers, [----] engagements
"Many of the most successful real estate owners aren't just passive" investors. They think about RE as an active business and they know the levers that they can use to raise rents reduce costs and increase NOI. They buy properties with a plan to add value but are also patient enough to allow father time to do his thing. They apply the SMB operator mindset to RE and thats why they continue to outperform"
X Link 2024-10-11T16:32Z 51.4K followers, [----] engagements
"Bonus Depreciation helps our clients defer millions in taxes. Cost segs unlock these savings but the losses won't offset your ordinary income from your job unless you are an RE Pro. Here's how to think about RE Pro status to make the best case with your CPA and the IRS:"
X Link 2024-10-14T16:37Z 51.6K followers, [----] engagements
"RE Pro Status starts with the IRS definition of a Real Estate Professional (IRS Pub 925). It is not as simple as getting a real estate license or working for a firm that provides real estate services. Ask yourself these questions to see if you qualify:"
X Link 2024-10-14T16:37Z 51.6K followers, [---] engagements
"Q1: Are you in the right business A real estate pro is spending their time in real property business. Builders house flippers brokers etc. Unfortunately banking and finance services and certain architect and engineering services don't qualify. This includes cost seg pros"
X Link 2024-10-14T16:37Z 51.6K followers, [---] engagements
"To materially participate you must be involved in the operations of the activity on a regular continuous and substantial basis. Once you pass the pro test the material participation often comes along for the ride"
X Link 2024-10-14T16:37Z 51.6K followers, [---] engagements
"You can elect to aggregate all rental real estate for purposes of measuring material participation under Sec. 1.469-9(g). Your time spent on all your rental properties (STRs don't qualify) counts as one activity making it easier to materially participate"
X Link 2024-10-14T16:37Z 51.6K followers, [---] engagements
"What happens to your RE portfolio when you pass away Do your heirs pay significant taxes This is a common question among real estate owners. Let's dive in: The reality is that wealthy families often pass on real estate assets from generation to generation. For example if one generation has an RE entrepreneur who amasses $50 million worth of real estate that portfolio can generate enough cash flow to support multiple future generations comfortably when passed on. So what happens if that initial investor built their empire by rapidly depreciating assets and using [----] exchanges to lower the"
X Link 2024-10-15T16:52Z 51.6K followers, [----] engagements
"This is why RE folks love cost segregation and bonus depreciation. The bonus depreciation rate is lower now (60% in 2024) but the tax savings available are still incredibly good. We purchased this Circle K gas station a few years ago for $1450000. We wrote off $1160000 of income in Year [--]. As a result we saved $430000 in taxes that same year. Our down payment was effectively FREE. Bonus depreciation is beautiful. https://t.co/oW36Qf0yJt We purchased this Circle K gas station a few years ago for $1450000. We wrote off $1160000 of income in Year [--]. As a result we saved $430000 in taxes that"
X Link 2024-10-15T17:59Z 51.6K followers, [----] engagements
"The playbook on how to use real estate to build wealth tax efficiently: [--]. Buy with moderate leverage [--]. Cost segregate and depreciate initial capital in [--]. Stabilize and borrow tax free against your asset [--]. Enjoy low tax cashflow year over year [--]. Eventually [----] exchange into a larger asset and repeat [--]. Die and step up basis [--]. Have your heirs repeat Many wealthy families do this over and over again and pay little to no taxes as their RE portfolio continues to grow"
X Link 2024-10-21T16:17Z 51.6K followers, [----] engagements
"I've seen a lot of folks jump through hoops to buy below average properties for too much money with [----] exchanges on the line. Reminder: It takes a long time to recover from a basis that is too high. Never let the tax tail wag the profit dog"
X Link 2024-11-01T16:45Z 51.6K followers, [----] engagements
"Join Nick Huber and Zac Prince CEO of RE Cost Seg for a free workshop on real estate taxes on November 12th at 10am EST. Just click the link below to RSVP. If you register well send you a copy of the recording even if you cant attend live https://hubs.ly/Q02WGgfy0 https://hubs.ly/Q02WGgfy0"
X Link 2024-11-01T20:39Z 51.5K followers, 108.6K engagements
"The tax benefits for real estate owners and investors in America are incredible. The most sophisticated RE investors I know buy properties build equity earn cashflow and use cost segregation + bonus depreciation to pay very little in taxes each year. Nick and Zac are hosting a free workshop tomorrow at [--] a.m. EST to cover the tactics and strategies you need to know. Just click the link below to RSVP. If you register well send you a copy of the recording even if you cant attend live. https://lu.ma/sxh7rdsu https://lu.ma/sxh7rdsu"
X Link 2024-11-11T15:17Z 51.5K followers, [----] engagements
"A client of ours bought a ranch to use as a short term rental property in [----] for $1.7 million. After our engineers did a virtual site visit they were able to assign a value of $347000 into either 5-7-15 year assets that were eligible for depreciation. In [----] the bonus depreciation amount that you could take was 100%. This means that the owner could immediately deduct the full amount of eligible property in the year it was placed in service rather than depreciating it over time. With that in mind he took the full $347K deduction in his first year of ownership to offset taxable income from"
X Link 2024-11-12T17:25Z 51.5K followers, [----] engagements
"People often forget that real estate is incredibly expensive to transact. Lawyers title insurance closing companies inspections appraisals brokers taxes etc. Holding real estate for a long time makes a lot of sense when you think about the complexity and fees you have to deal with on the way out"
X Link 2024-11-20T16:19Z 51.4K followers, [----] engagements
"If you want to be a real estate pro you need to understand the terms. Here are a few definitions that you absolutely must know. Bookmark this thread and use it as your cheat sheet. Here are the terms that Ill define in this thread: -DEPRECIATION -BONUS DEPRECIATION -COST SEGREGATION -BASIS -LAND VALUE -IMPROVEMENT VALUE [-----] -RECAPTURE DEPRECIATION: Depreciation is the decrease in $$ value of your asset over time due to wear & tear etc. Standard depreciation is deducted evenly over [----] years for residential and [--] years for commercial. Even w/o cost segregation you get to deduct"
X Link 2024-11-25T17:17Z 51.4K followers, [----] engagements
"When thinking about depreciation it's not about when you buy the property it is when you "put it into service." When you buy determines your short/long term capital gains. The "in-service" date = The point in time when you can start taking depreciation from"
X Link 2024-11-29T16:16Z 51.3K followers, [----] engagements
"Why we like investing in real estate more than 401(k)s. Both offer tax deferrals but here's the difference: If you're making pre-tax contributions to your 401(k) then withdrawals = ordinary income tax. With real estate gains you're paying capital gains tax (which is typically lower). Plus RE investors get: [--]. Cash flow from their properties [--]. The ability to do cost segregation and bonus depreciation [--]. The ability to use leverage to acquire more attractive assets and amplify their potential gains [--]. A physical property that has real-world use and value vs. holding stocks and bonds [--]. The"
X Link 2024-12-02T15:29Z 51.3K followers, [----] engagements
"Many find that anywhere from 15-35% of the purchase price of a typical apartment complex is this type of property. More of it means less tax for you from higher depreciation amounts"
X Link 2024-12-05T15:08Z 51.3K followers, [---] engagements
"Lever [--] = % of Leverage: This is a big one The more leverage (debt) that is applied to a property or deal the more cost savings you will get up front relative to the equity you put in. Let's say you buy a $10 MM dollar deal that has $3 MM of year one depreciation"
X Link 2024-12-05T15:08Z 51.3K followers, [---] engagements
"If you used $7M of bank debt and only $3M of equity your year [--] deduction could equal the amount of money you put into the deal If you had used cash for the full $10M you would get a deduction worth 30% of your investment. (remember more debt = more risk)"
X Link 2024-12-05T15:08Z 51.3K followers, [---] engagements
"Lever [--] = % Tax Rate Another HUGE consideration. Depreciation is a deduction that you are allowed to take at your Marginal Tax Rate. Similar to a 401k part of the strategy is a tax arbitrage. It is a much better outcome to take the deduction at 37% rather than 24%"
X Link 2024-12-05T15:08Z 51.3K followers, [---] engagements
"Real estate is fun when you can buy add value and sell. But it's even better when you can buy add value and hold for 20+ years. Never underestimate the power of compounding. It's amazing how much your wealth can grow if you just buy great assets in great locations every few years and then hold them for a very long time"
X Link 2024-12-06T16:43Z 51.3K followers, [----] engagements
"This is the simple playbook that tons of Americans have used to build wealth over the last [--] decades: [--]. Earn free cashflow from their business. [--]. Invest their personal profits into real estate. [--]. Do a cost seg study and take bonus depreciation to offset other income. (This works best when you or your spouse are RE pros) [--]. End up with a lot of cash and little to no tax each year. [--]. Make more money buy more buildings and repeat. These folks have compounded their wealth significantly faster than their W2 counterparts since they don't lose 30-50% to taxes each year"
X Link 2024-12-09T15:29Z 51.3K followers, 26.4K engagements
"The cold hard truth about the American tax code: It is designed to benefit entrepreneurs & businesses not employees. Asset owners not renters. Investors not consumers. The US wants to incentivize growth and risk. As soon as you start to understand this your strategy w/ the above in mind will change"
X Link 2024-12-10T15:34Z 51.3K followers, [----] engagements
"Want to learn more about RE Pro Status and tax saving strategies for CRE Watch this video below:"
X Link 2024-12-11T16:02Z 51.3K followers, [----] engagements
"A lie: Bonus depreciation is only for new properties or acquisitions. The truth: You can retroactively apply bonus depreciation to property placed in service after September [--] [----] when the Tax Cuts and Jobs Act passed changing various rules. The IRS allows you to claim missed depreciation deductions by adjusting your current year's tax return without needing to amend previous year's returns. This is typically done through a change in accounting method using IRS Form [----]. The best part: We now offer services to help you prepare your form [----] as an optional add-on to your cost seg study"
X Link 2024-12-12T16:11Z 51.3K followers, [----] engagements
"A client of ours: Passively owns a stake in a business generating pretty substantial profits for him each year. He then buys real estate most years and gets a big chunk of bonus depreciation. When he does this he ends up paying very little taxes. The ability to compound wealth by using this strategy is pretty magical. SMB + RE is a phenomenal way to go"
X Link 2024-12-13T16:02Z 51.3K followers, [----] engagements
"Land and site improvements are still some of the best cost segregation items on our reports. We love earthwork stormwater landscaping hardscaping pools decks patios hot tubs fire places outdoor kitchens parking lots fences and more. Our cost seg engineers can assign a value to all of these components and then help you take standard or bonus depreciation on them for your specific property this year"
X Link 2024-12-16T16:16Z 51.3K followers, [----] engagements
"What a lot of people get wrong: You don't just "get into" real estate. It takes a lot of cash. Many of my clients fall into one of two camps: They run a company that generates cash or they raise money from people who do"
X Link 2024-12-23T16:08Z 51.3K followers, [----] engagements
"Too many entrepreneurs make good money each year but pay Uncle Sam 35-50% of it. It takes a long time to build a massive wealth snowball when 1/3 to 1/2 of your snow gets chopped off each year. Real estate can help with this. The best model I've seen is: [--]. Earn cashflow from entrepreneurship. [--]. Buy real estate as a "real estate professional." [--]. Book losses through bonus depreciation. [--]. End up with all cash and little to no tax. Your wealth snowball ends up a lot larger [--] years down the road when you make and keep your money in a more tax efficient way"
X Link 2024-12-30T16:23Z 51.3K followers, [----] engagements
"Many of the most successful real estate owners aren't just passive" investors. They think about RE as an active business and they know the levers that they can use to raise rents reduce costs and increase NOI. They buy properties with a plan to add value but are also patient enough to allow father time to do his thing. They apply the SMB operator mindset to RE and thats why they continue to outperform"
X Link 2025-01-02T16:41Z 51.2K followers, [----] engagements
"There are [--] scenarios that will qualify as material and you only need to meet one: *500 hours *Substantially all participation * [---] hrs and at least 1/2 *Significant participation *5/10 years *Personal service activity w participation in last [--] years *Continuous participation"
X Link 2025-01-03T15:02Z 51.2K followers, [---] engagements
"If you've reached the end of this thread and your NGMI on RE pro there are a few more options: [--]. Buy RE for your business to operate out of [--]. Generate lots of passive income that you need to offset [--]. STR Loophole"
X Link 2025-01-03T15:02Z 51.3K followers, [---] engagements
"If RE Pro status is in your future congrats As always: [--]. Talk with your CPA before making any decisions [--]. Be mindful of Excess Business Loss rules [--]. Taking bonus depreciation early is a tax deferral not a tax savings. Recapture is real and debt must be repaid"
X Link 2025-01-03T15:02Z 51.2K followers, [---] engagements
"As with all great tax hacks RE Pro requires consideration and planning but for the right person the juice is definitely worth the squeeze and you can defer a lot of taxes through this strategy"
X Link 2025-01-03T15:02Z 51.2K followers, [---] engagements
"In [----] one of our clients built a single family rental in California for $8.1M. After completing a cost seg they saved over $660K in first year taxes. Details below:"
X Link 2025-01-06T14:59Z 51.2K followers, [----] engagements
"If the client never completed a cost seg with us they would have missed out on over $500K in first year tax savings:"
X Link 2025-01-06T14:59Z 51.2K followers, [----] engagements
"After virtually touring the property our engineers were able to assign [--] [--] or [--] year useful lifespans to all components of their property:"
X Link 2025-01-06T14:59Z 51.2K followers, [----] engagements
"Which led to a massive $660K+ in first year tax savings:"
X Link 2025-01-06T14:59Z 51.2K followers, [----] engagements
"There are several different types of income in the US tax code. Two main types are active income and passive income". Active income is money you earn from working such as wages from a W-2 job or income from running a business. Passive income is money you earn from investments like real estate stocks or rental income from your RE portfolio where you earn $ without actively working. Normally you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job. That is unless you are an RE Pro. The reality is that Real Estate Pro status"
X Link 2025-01-07T16:07Z 51.2K followers, [----] engagements
"Newton's law of tax: What goes down must come up. Everyone enjoys the sweet benefits of bonus depreciation but what happens when you sell A post on recapture. People are concerned about recapture when they cost segregate their improvements and for good reason. Recapture is real and those deferred taxes will need to be paid. But fear not If you think ahead you can minimize recapture with the right tax planning. So what is recapture Basically there's no free lunch when it comes to taxes. Depreciating property lowers your tax basis. When you go to sell you're subject to tax on the amount of"
X Link 2025-01-17T17:03Z 51.2K followers, [----] engagements
"The simple explanation of "bonus depreciation" and how real estate investors make millions while paying little to no taxes:"
X Link 2025-01-21T15:52Z 51.2K followers, 46.5K engagements
"If you do a cost seg and take bonus depreciation now and then you sell your property for a large gain in the future you might need to pay what's called "recapture" taxes. This is common with real estate. It's typically not a big deal but it's important to consider this with your CPA before you sell"
X Link 2025-01-30T15:33Z 51.2K followers, [----] engagements
"One of our clients deferred $95563 in taxes. Heres how: They acquired a [-----] square foot warehouse used as a storage facility rental for $879000. The law doesnt allow them to deduct the full $879K against their taxes in year [--] so my team had to figure out the useful lifespan of each component of their property in order to maximize their tax deduction via bonus depreciation. For example a countertop has a [--] year lifespan HVAC has a [--] year lifespan and various land improvements like sidewalks fencing and parking lots have a [--] year lifespan. After virtually touring the property and itemizing"
X Link 2025-02-04T15:44Z 50.9K followers, [----] engagements
"Death and taxes. The two facts of life. Except for real estate investors who buy cost seg [----] exchange into another property and when they die their properties step up in basis to their heirs. Income taxes can technically be deferred forever for RE investors"
X Link 2025-02-28T16:07Z 51.1K followers, [----] engagements
"What a lot of people get wrong: You don't just "get into" real estate. It takes a lot of cash. Many of my clients fall into one of two camps: They run a company that generates cash or they raise money from people who do"
X Link 2025-03-26T15:27Z 51K followers, [----] engagements
"Too many entrepreneurs make good money each year but pay Uncle Sam 35-50% of it. It takes a long time to build a massive wealth snowball when 1/3 to 1/2 of your snow gets chopped off each year. Real estate can help with this. The best model I've seen is: [--]. Earn cashflow from entrepreneurship. [--]. Buy real estate as a "real estate professional." [--]. Book losses through bonus depreciation. [--]. End up with all cash and little to no tax. Your wealth snowball ends up a lot larger [--] years down the road when you make and keep your money in a more tax efficient way"
X Link 2025-04-03T14:21Z 51K followers, [----] engagements
"One of our clients deferred $95563 in taxes. Heres how: They acquired a [-----] square foot warehouse used as a storage facility rental for $879000. The law doesnt allow them to deduct the full $879K against their taxes in year [--] so my team had to figure out the useful lifespan of each component of their property in order to maximize their tax deduction via bonus depreciation. For example a countertop has a [--] year lifespan HVAC has a [--] year lifespan and various land improvements like sidewalks fencing and parking lots have a [--] year lifespan. After virtually touring the property and itemizing"
X Link 2025-05-07T14:05Z 50.9K followers, [----] engagements
"When thinking about depreciation it's not about when you buy the property it is when you "put it into service." When you buy determines your short/long term capital gains. The "in-service" date = The point in time when you can start taking depreciation from"
X Link 2025-05-30T15:01Z 50.9K followers, [----] engagements
"If you used $7M of bank debt and only $3M of equity your year [--] deduction could equal the amount of money you put into the deal If you had used cash for the full $10M you would get a deduction worth 30% of your investment. (remember more debt = more risk)"
X Link 2025-06-10T15:23Z 50.9K followers, [---] engagements
"Lever [--] = % Tax Rate Another HUGE consideration. Depreciation is a deduction that you are allowed to take at your Marginal Tax Rate. Similar to a 401k part of the strategy is a tax arbitrage. It is a much better outcome to take the deduction at 37% rather than 24%"
X Link 2025-06-10T15:23Z 50.9K followers, [---] engagements
"A client of ours: Passively owns a stake in a business generating pretty substantial profits for him each year. He then buys real estate most years and gets a big chunk of bonus depreciation. When he does this he ends up paying very little taxes. The ability to compound wealth by using this strategy is pretty magical. SMB + RE is a phenomenal way to go"
X Link 2025-06-17T15:08Z 50.9K followers, [----] engagements
"Land and site improvements are still some of the best cost segregation items on our reports. We love earthwork stormwater landscaping hardscaping pools decks patios hot tubs fire places outdoor kitchens parking lots fences and more. Our cost seg engineers can assign a value to all of these components and then help you take standard or bonus depreciation on them for your specific property this year"
X Link 2025-06-18T16:13Z 50.9K followers, [----] engagements
"Too many entrepreneurs make good money each year but pay Uncle Sam 35-50% of it. It takes a long time to build a massive wealth snowball when 1/3 to 1/2 of your snow gets chopped off each year. Real estate can help with this. The best model I've seen is: [--]. Earn cashflow from entrepreneurship. [--]. Buy real estate as a "real estate professional." [--]. Book losses through bonus depreciation. [--]. End up with all cash and little to no tax. Your wealth snowball ends up a lot larger [--] years down the road when you make and keep your money in a more tax efficient way"
X Link 2025-07-03T17:05Z 50.9K followers, [----] engagements
"Q1: Are you in the right business A real estate pro is spending their time in real property business. Builders house flippers brokers etc. Unfortunately banking and finance services and certain architect and engineering services don't qualify. This includes cost seg pros"
X Link 2025-07-08T14:23Z 50.9K followers, [---] engagements
"Q2: Are you an equity owner This trips a lot of people up. You must own at least 5% equity in the qualifying business. Working a W-2 job at construction company =/= RE PRO Owning a construction company == possibly an RE Pro"
X Link 2025-07-08T14:23Z 50.9K followers, [---] engagements
"The playbook on how to use real estate to build wealth tax efficiently: [--]. Buy with moderate leverage [--]. Cost segregate and depreciate initial capital in [--]. Stabilize and borrow tax free against your asset [--]. Enjoy low tax cashflow year over year [--]. Eventually [----] exchange into a larger asset and repeat [--]. Die and step up basis [--]. Have your heirs repeat Many wealthy families do this over and over again and pay little to no taxes as their RE portfolio continues to grow"
X Link 2025-07-17T16:00Z 50.9K followers, [----] engagements
"Newton's law of tax: What goes down must come up. Everyone enjoys the sweet benefits of bonus depreciation but what happens when you sell A post on recapture. People are concerned about recapture when they cost segregate their improvements and for good reason. Recapture is real and those deferred taxes will need to be paid. But fear not If you think ahead you can minimize recapture with the right tax planning. So what is recapture Basically there's no free lunch when it comes to taxes. Depreciating property lowers your tax basis. When you go to sell you're subject to tax on the amount of"
X Link 2025-07-21T15:34Z 50.9K followers, [----] engagements
"Depreciation is the act of slowly over time deducting the initial expense of a real estate purchase against your taxable income. Generally over a [----] (residential) or [--] (commercial) yr time frame. So each year you can deduct 2-3.6% of the purchase $ against your income"
X Link 2025-07-22T14:15Z 50.9K followers, [---] engagements
"But some items can be depreciated on a quicker timeline. A roof road sidewalk fencing walls gates doors latches flooring air conditioners pavers curbing landscaping etc. The IRS has a depreciation schedule for each type. Some parts are [--] yrs. Others [--] or [--] years"
X Link 2025-07-22T14:15Z 50.9K followers, [---] engagements
"Bonus depreciation allows you to deduct a certain percentage of cost in the first year an asset is put into service. Anything that is on a schedule of [--] years or less. So the doors sidewalks HVAC walls latches curbs security gates etc A % of this stuff goes in Yr 1"
X Link 2025-07-22T14:16Z 50.9K followers, [--] engagements
"You pay for an engineered study (Our company does them quickly and affordably) and it lays out your depreciation schedule. Engineers go through your asset and lay out the proportion of the purchase price applied to each component of the building (windows landscaping etc)"
X Link 2025-07-22T14:16Z 50.9K followers, [--] engagements
"One of the most common questions we get: Which jobs have the potential to qualify me as a Real Estate Professional Heres the answer: To qualify as a Real Estate Professional (RE Pro) in [----] you need to meet certain criteria set forth by the IRS. Here are some of the key requirements: [--]. Material Participation in a Real Estate Trade or Business. This is pretty straightforward but you must materially participate in a real property trade or business such as development redevelopment construction reconstruction acquisition conversion rental operation management leasing or brokerage. [--]. Time"
X Link 2025-07-24T17:02Z 50.9K followers, [----] engagements
"Its not what you make its what you keep Our team at RE Cost Seg has helped thousands of real estate owners and investors save a lot of $$$ on taxes. Here's a framework that you should know for tax planning:"
X Link 2025-07-28T16:01Z 50.9K followers, [----] engagements
"The further you can push your taxes out the smaller they become. The time value of money shows us that a dollar is worth more today than [--] years from now. Planning is used to kick the can down the road and make sure there will be available cash to pay the tax"
X Link 2025-07-28T16:01Z 50.9K followers, [--] engagements
"The #1 way real estate investors defer taxes to later dates is with a system called depreciation and bonus depreciation. Which is where our team can help:"
X Link 2025-07-28T16:01Z 50.9K followers, [--] engagements
"But other items can be depreciated on a quicker timeline. A roof road sidewalk fencing walls gates doors latches flooring air conditioners pavers curbing landscaping etc. The IRS has a depreciation schedule for each type. Some parts are [--] yrs. Others [--] yrs etc"
X Link 2025-07-28T16:01Z 50.9K followers, [--] engagements
"So we depreciate a portion of the asset costs faster. We do the study and get dollar amounts assigned to different parts and different schedules to front-load depreciation. Now you can get [--] or 6% of the value as a deduction in the early years. But wait. there's more"
X Link 2025-07-28T16:01Z 50.9K followers, [--] engagements
"The bonus depreciation rate in [----] is 100%. It's not uncommon to allocate 30% of an asset's cost to items that can be depreciated on a [--] year or faster time frame. So now 100% of that 30% can be depreciated in the first year excluding land"
X Link 2025-07-28T16:01Z 50.9K followers, [--] engagements
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