🏡Most accountants miss the number one tax deduction for real estate investors.
💰You can write off a portion of the purchase price of a rental property over 27.5 years.
📝Depreciation recapture is taxed at a maximum rate of 25% when you sell the property.
🏢For nonresidential properties, the depreciation period is 39 years.
🔍Cost segregation can help break down the components of a property for more accurate depreciation and tax savings.
Why do most accountants overlook this tax deduction?
—Most accountants focus on typical residential real estate depreciation, but miss the nuances of tax deductions for real estate investors.
What is depreciation recapture?
—Depreciation recapture is the tax you pay on the amount you deducted throughout the years when you sell the property.
Can I write off the cost of a new roof or other improvements?
—Yes, you can write off the cost of certain improvements if they have a different useful life than the overall property.
What is cost segregation?
—Cost segregation is the process of breaking down a property into its components to assign different depreciation periods and maximize tax deductions.
Who can benefit from cost segregation?
—Any real estate investor, including landlords and commercial property owners, can benefit from cost segregation to reduce their tax liability.
00:00In this video, Toby Mathis introduces the number one tax deduction for real estate investors.
03:00Most accountants miss this tax deduction because they focus on typical residential real estate depreciation.
08:00Depreciation recapture is taxed at a maximum rate of 25% when you sell the property.
13:00Cost segregation allows for a more accurate breakdown of a property's components to maximize tax deductions.
14:00Any real estate investor can benefit from cost segregation to reduce their tax liability.
