Most people invest in real estate for cash flow or appreciation, but there are enormous tax benefits as well. In this episode, we’re going to share the number one tax strategy you need to know about—the short-term rental tax loophole—which could save you thousands!
Welcome back to the Real Estate Rookie podcast! Today, we’re joined by Sean Graham, who is not only a certified public accountant (CPA) but also a fellow real estate investor. He’s going to show YOU how to avoid paying Uncle Sam (legally) with just a few savvy tax strategies. The best part? You don’t need to be a big-time investor with a large real estate portfolio to take advantage of these benefits. Even if you have just ONE rental, these strategies are for you!
First, Sean will share the ins and outs of the cost segregation study, which allows you to frontload depreciation rather than spreading it out over the next few decades. He’ll also get into bonus depreciation and the different line items that qualify, as well as the tax “loophole” that allows you to use tax deductions to offset active income—yes, including your W2 wages!
Ashley:
There’s a number one tax loophole out there that if you don’t know about it, then you’re leaving money on the table.
Tony:
I’ve personally been able to legally avoid paying taxes using this one strategy, and we’ll go over what a cost segregation is, who qualifies, and how to complete when to keep more money in your pocket.
Ashley:
This is the Real Estate Rookie podcast. I am Ashley Kehr.
Tony:
And I’m Tony j Robinson, and welcome to the Real Estate Rookie podcast. Today we have Sean Graham as our guest expert on cost segregation studies. Sean, welcome to the show. Thank you.
Sean:
Thanks, Tony. Thanks Ashley for having me.
Ashley:
Yeah, Sean, let’s get started with what a cost segregation is.
Sean:
A cost segregation study really is a way to accelerate the depreciation on your real estate. So the iris, they require you to depreciate rental…