BiggerPockets Real Estate Podcast
Business:Investing
What’s the key to paying fewer taxes? A cost segregation study. Never heard of it? Most real estate investors haven’t, but we’re about to unlock a world of tax-free income earning using this specific tool. If you’ve wondered how the wealthy pay such few taxes while owning million-dollar-producing real estate, this is how. In today’s episode, you’ll learn how to use cost segregation, too, so you can keep more money in your pocket.
Taxes aren’t everyone’s favorite subject, but paying fewer taxes? You can probably get behind that. We’ve brought on CPA and CFP Mitchell Baldridge to explain how he helps real estate investors, large and small, delete their taxable income and build their real estate portfolios faster. Our own Rob Abasolo uses Mitchell’s team to cut his taxes down by more than six figures!
In this episode, we’ll explain what cost segregation is, why so many top real estate investors use it to lower their taxes, when you can (and can’t) use it on your properties, the short-term rental tax “loophole” to take advantage of, AND what happens when you do it wrong.
In This Episode We Cover:
How to wipe out your income taxes using cost segregation studies
Bonus depreciation and writing off your property faster than before
Using real estate losses to lower your W2 or business income
The short-term rental “loophole” ANYONE can use to reduce their taxable income
Carrying over losses and why top real estate investors will NEVER stop buying property
Caveats and pitfalls of cost segregation and when it can come back to bite you
And So Much More!
Links from the Show
Find an Agent
Find a Lender
BiggerPockets Youtube Channel
BiggerPockets Forums
BiggerPockets Pro Membership
BiggerPockets Bookstore
BiggerPockets Bootcamps
BiggerPockets Podcast
BiggerPockets Merch
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts
Get More Deals Done with The BiggerPockets Investing Tools
Find a BiggerPockets Real Estate Meetup in Your Area
Davids's BiggerPockets Profile
David's Instagram
Rob's BiggerPockets Profile
Rob's Instagram
Rob's TikTok
Rob's Twitter
Rob's YouTube
Landlord Tax Loopholes That’ll Help You Pay ZERO Taxes
Can a Cost Segregation Study Help You Lower Your Taxes?
Connect with Mitchell:
Baldridge Financial
Better Bookkeeping
RE Cost Seg
STR Cost Seg
Mitchell's Twitter/X
Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-823
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.
Learn more about your ad choices. Visit megaphone.fm/adchoices
How to Use the BRRRR Method to “Invest on Repeat”
962: How to Buy a Home (or Entire Neighborhood) With Your Friends and Family w/Phil Levin
961: Seeing Greene: How to Avoid High Down Payments and When to BRRRR vs. Buy New
960: No Cash Flow in Your Market? How to Invest Out-of-State Like a Pro w/Jessica and Shyd Coloma and Michael Gallagher
959: BiggerNews: 2024 Housing Market Update and Why Prices Are Still Rising
958: Hiring a Property Manager 101: Make More (in Less Time) from Your Rentals w/Luke Rzepiennik and Michael Vialpando
957: Seeing Greene: Flood Zones, New Builds, & Does Mexico's Cash Flow Beat the US?
956: How a 3% Interest Rate Cost Me Over $180,000 (Avoid My Mistake) w/Tanner Litchfield
955: BiggerNews: Real Estate vs. Stocks, the Ultimate Wealth-Building Debate w/The Motley Fool!
954: Cheap Old Houses: Buying Fixer-Uppers for Just $100K w/Ethan and Elizabeth Finkelstein
953: Is the 1% Rule Dead? + Why Building (NOT Buying) Could Make You More
952: From Broke College Graduate to Financial Freedom While Living Abroad w/Dave Meyer
951: BiggerNews: Why Low Mortgage Rates Can't Solve Our Affordability Crisis w/Andy Walden
950: The Easiest Way to Invest in Real Estate in 2024 w/Terrence Terrell
949: Seeing Greene: Is Losing $800/Month in Cash Flow Worth $200K+ Equity?
948: 10 Rentals in 5 Years by Buying in Overlooked Short-Term Rental Markets w/Jarrod Tucker and Yiwei Cheng
947: 2024 Deals We’re Doing with High Cash Flow and Rock-Bottom Rates (4.75%!)
946: How to Supplement Your Income with Real Estate (So You Can Do What You Love) w/Juliet Lalouel
945: Seeing Greene: Stolen Properties and Why Your Rate Doesn't (Really) Matter
944: 3 Ways We Find Real Estate Deals Even During the Harshest Housing Markets
Create your
podcast in
minutes
It is Free
TED Talks Daily
Radiolab
StarTalk Radio
The Inforium
Entrepreneurial Thought Leaders