Eric Siu breaks down real-estate tax strategies including bonus depreciation, cost segregation, and opportunity zones. He explains how to defer capital gains and emphasizes coordinating year-end planning with an accountant to minimize tax exposure.
I haven't paid tax in— I don't know how long. A long time. Because legally, because I get such a big tax break for providing housing. And there's all kinds of other reasons. You get bonus depreciation, cost segregation, you know, and of course, straight-line depreciation. And there's all kinds of tax benefits the government gives you. So we're making lots of money. Actually, my accountant's here and I— we just bought a building and we exited another one. And I'm like, Eric, I need a meeting in October. You know, we need some year-end tax. So strategy to see where, you know, how exposed we are. And I think that I have friends that have done what you've done, you know, because I'm in YPO, right? I have friends that have exited big companies. And the problem is, is you pay a fair amount in tax. And so the option at that point, Eric, there's actually real estate sophisticated, very good groups that are actually trying to aggregate people to go into opportunity zones. So opportunity zone money, you can take a capital gain and invest it into an opportunity zone fund and then defer that capital gain.
