Pay Little to No Taxes with this Tax Strategy

💰During your lifetime, taxes are likely to be your biggest expense, especially as your income increases.

🏘️Real estate investment provides unique tax benefits, including appreciation and accelerated depreciation.

📉Straight-line depreciation allows owners of residential real estate to deduct the value of their property over 27.5 years.

🚀Accelerated depreciation can be achieved through a cost segregation study, allowing certain assets to be depreciated over shorter time periods.

💡A cost segregation study can identify personal property and land improvements that qualify for accelerated depreciation.

How does depreciation reduce taxes?

—Depreciation allows you to deduct the decrease in value of an asset over time, reducing your taxable income and lowering your tax bill.

What is a cost segregation study?

—A cost segregation study is a detailed analysis that identifies assets within a property that can be depreciated over shorter time periods, providing larger upfront tax benefits.

Can individuals benefit from accelerated depreciation?

—Yes, individuals who invest in real estate can benefit from accelerated depreciation by using strategies like cost segregation studies to reduce their tax liability.

How does accelerated depreciation increase cash flow?

—By reducing your taxable income, accelerated depreciation can lower your tax liability, resulting in increased cash flow over the long term.

Is accelerated depreciation legal?

—Yes, accelerated depreciation is a legitimate tax strategy allowed by the IRS, as long as it follows the proper guidelines and regulations.

00:00Did you know that taxes are likely to be your biggest expense during your lifetime?

04:15Real estate investment provides unique tax benefits, including appreciation and accelerated depreciation.

09:23Accelerated depreciation allows assets to be depreciated over shorter time periods, reducing tax liability and increasing cash flow.

11:36A cost segregation study can identify personal property and land improvements that qualify for accelerated depreciation.