The biggest real estate tax deduction is coming back. That’s right—100% bonus depreciation is almost cleared for a triumphant return as the House pushed a new tax bill to the Senate, one that includes some massive tax deduction potential for real estate investors and everyday Americans alike. So, why is this SUCH a big deal? We’ve got Brandon Hall, CPA, on to break down why bonus depreciation could save you tens, if not hundreds, of thousands of dollars.
Everyone knows that real estate boasts some of the best tax benefits of any investment in the nation. But, the one tax benefit to rule them all is almost always depreciation. This tax write-off lets you expense a portion of your property every year and can turn your real-life gain into a paper loss, so you keep your cash flow while avoiding taxes. But bonus depreciation is like regular depreciation on steroids. And the tax benefits can be massive.
So, how do you take advantage of this huge tax write-off? What do you need to know BEFORE you take it? And should you hold off on filing before this new bill passes? We’ve got answers to all that and much more in this episode, so stick around!
Dave:
Hey, what’s up everyone? Welcome to the BiggerPockets Podcast Network. My name’s Dave Meyer. I’ll be your host today for this crossover event. This show will be airing both on the BiggerPockets real estate feed as well as on the Market feed because we have breaking news that’s super exciting and interesting for real estate investors. And to help me discuss this, my good friend Henry Washington is here with me today. Henry, how’s it going, man?
Henry:
Hey, man. So good to be here. This is the ultimate asking for a friend episode.
Dave:
I know where Henry’s going with this because we obviously know what the show is about and it’s about taxes, and sometimes I admit I don’t always know what’s going on with taxes even as it relates to real estate investing. Henry, if you were to rate yourself like one to 10,…