He Saved A Client $4 Million Dollars with This IRS-Approved Tax Strategy - Jeff Hiatt

And we save them over $4 million of income tax. And their tax advisor said, this is Incredible. To save $4 million on this transaction, you guys have to do a seminar for this.

Cost segregation is our favorite thing as real estate investors and developers. It's how I have been able to not pay a lot of taxes for many years. And when you can recompound that wealth and grow your wealth and your assets quicker, it's a game changer.

You paid a little bit of money and you got back four or five or 10 or 20 times.

When I first learned about it, because I would read the tax code to learn about tax strategy, because I realized no one cared as much about my money as I did. And when I brought it to my cpa, they had no idea what it was. And that's how I was like, oh, my gosh, this is crazy.

We did a seminar, and we had 85 CPAs come after that seminar. From doing five or ten projects a year to doing a couple of hundred.

One relationship can change everything. Welcome back to the Hannah Hammond Show. I am sitting here today with Jeff Hyatt, with msc. Cost segregation and cost segregation is our favorite thing as real estate investors and developers because it helps us reduce our tax liability and therefore compound our wealth much quicker and easier. And it's completely legal and amazing. And it's been insanely beneficial to me personally and pretty much everybody I know because it's how I have been able to not pay a lot of taxes for many years. And when you can recompound that wealth and grow your wealth and your assets quicker, it's a game changer. Just pull out a compound calculator and look at what your wealth would be if you weren't paying any or as many taxes. So I'm excited to talk about cost segregation because I think it's so important. And when I first learned about it, because I would read the tax code to learn about tax strategy, because I realized no one cared as much about my money as I did. And when I brought it to my cpa, they had no idea what it was. And that's how I was like, oh, my gosh, this is crazy. So welcome to the show.

Glad to be here. Thank you so much. It's been great traveling with you today. All around the place.

It's been so fun. You're so cool, and we know so many of the same people, too. And, I mean, you've been with your company for a long time, and you guys are like, the biggest cost segregation company in the country.

Independent.

Independent.

Yes.

Independent.

The big four accounting firms have bigger but right for independent, yes.

Okay, and you guys have done over 26,000 studies.

That's correct.

So over the past 30 plus years.

So we started doing this. The firm started in 96. I was introduced to it through a young CPA that was moving to the Boston area from Buffalo, New York. And he told me about it and he said, oh, Jeff, with what you're doing with your business clients, you should hear about this thing called cost segregation. And I said, oh, what's that? And he goes, oh, it's accelerated depreciation. And I said, ah, no, that sounds boring. And he said, oh, well, you should talk to your clients. If they own property, they're going to be interested in this. So I checked around and a couple of my clients at the time were into, I'll call it franchise quick service restaurants, you know, maybe a Domino's Taco Bell, Dunkin Donuts. So we did some investigation with them and they said, oh, that would be amazing to have faster write offs. And I was like, okay, well, so we started doing a few projects here and there. We were doing five or 10 projects a year and. And then in 02, we ended up doing for a big defense contractor that had sold the building in a sale leaseback. We did a cost seg for that buyer and we saved them over $4 million of income tax. And their tax advisor said, this is Incredible. To save $4 million on this transaction, you guys have to do a seminar for this. And I was like it. In my head, I went, oh, gosh, that's gonna be terrible. But in my mouth I said, oh, well, that sounds great. Let's do it. And I said, how would we do that? And the guy goes, well, I'm on the board. I'll get you into the big CPA society. And I said, okay. So we did a seminar and we had 85 CPAs come. And we went after that seminar from doing five or 10 projects a year to doing a couple of hundred. Now at this point, we do 15 to 1,800 a year all over the country. We now instead of it being an engineer, a CPA, and myself back in 99, it's become 27 qualified professionals and 10 or so accountant types that boil down the site visit info from our qualified professionals. The accountant types boil it down into the various components that create the savings.

That's so wild. And that's what we were talking about earlier. It's like one relationship can change everything. Going from 10 cost SEG studies a year to over 200. And that doesn't only help your business, it's helping hundred. And now you're doing thousands of people's incomes every single year and building freedom and lives of freedom. So that's so, so cool. And so I guess for those who may not know, what is the layman's terms of a cost segregation study and how does it save people taxes?

That's perfect lead into to where we need to kind of explain to people where this is all about. Because some people have heard it, they see stuff on the Internet and the jazzy guy walking around the place going, oh, save money and all this. Well, the interesting part of it is, if I ask the question to you, Hannah, would you, if I give you the option, would you rather take a deduction today or wait 27 and a half or 39 years to take that deduction today?

Today, always. Money's worth more today than it is in 30 years.

Correct. And if you can use that money and do something positive with it, that is enhance your own portfolio, your own wealth situation, as opposed to sending it down to Washington, D.C. most people say, gosh, I would love to do that. So let's say I asked you that question and you go, well, I'd like to take a deduction today. And I say, well, Hannah, you own some buildings or a building. How about I do a study for you? Now, you're going to have to pay for the study, but it'll save you money. Would that be of interest to you?

Yes.

Okay, so let's say we do that and I'm going to tell you, okay, Hannah, it's going to cost you. Well, that looks like a stack of money there. Probably that's, let's say that's eight grand. So you're going to pay me eight grand to do a study for you and it's going to save you money. It's going to enable you to reduce your income taxes today and you'll be able to do positive things with that money once you have it with. Would that be a good thing? If the ROI sounds like it's going to be good, yeah.

How much do you think I would save with this $80,000 investment?

Probably at least 50, 60, 70,000. So you're going to get a nice ROI there. At least four or five to one on that. @ least. Makes sense. Yeah. And you could use it for, actually, at this point, you could use it for tax year 24, or if you don't need it for 24, you could use it for 25 sound good?

That sounds great.

Okay, well, let's fast forward here, Run the time machine and let's see what happens when I come back to you.

Here's your eight grand.

Hey, thank you very much. I'm so glad to have this eight grand.

Thank you.

That'll pay my team to get out there. Well, look at this. Fast forward the DeLorean time machine workforce. And so there's our report and that's all about your building and.

Oh, what is in here?

Well, look at tab three. And there's something in there for you. Well, and look at that stack of money that you just have. So you paid this little amount of money. Let's compare the side by side. So you paid a little bit of money and you got back four or five or 10 or 20 times.

Yeah.

And where that ratio comes is basically as long as you've spent under the current tax code at least 300,000 to buy a building, build a building or renovate a building. So if you've spent 300k or more under the current 40% tax bonus, depreciation, it's going to make sense to do. If the tax law changes go through that are being Talked about in D.C. at this point, that's going to push that number down to maybe 200 or 250. So now it makes sense for you financially. You spend a buck, you save four or five dollars in tax, people say, hey, let's go. You can do this retroactively as well because you've owned that property, you know, you've owned it for five or seven or 10 or 15 years. This is going to make sense for you to do.

Yeah, and that's what's so cool. Because when I learned about cost segregation, I had already owned a handful of properties and I didn't know about cost segregation before. And so when I found out that it can be retroactive and it's based off of when the property was put into service. So when I had renovated them and rented them out and then any. And because I'm a real estate professional, even if the money wasn't made from the rental income, it was made in my real estate business by selling real estate or doing loans, I could take that depreciation and put it against, you know, use it as a deduction against my own personal income. So let's say after all my write offs and everything, I made a million bucks. Well, I could go buy a, you know, $4 million property and put a little bit of money down. What would that be for? 800,000 down. And almost get that entire amount of money written off against my personal income, wipe out my taxes, and then have an asset that I invested in that I could add value to as well.

Bingo bango. That's what it's all about is, is being able to understand how to, how the process works, what it's going to do for you. And you know, you can do it as we were talking about retroactively or you can do it for a property that you just bought. It can also help if you're, let's say your family owned a building in the town that you grew up in and it's always been in the family. Well, you're thinking, well, it's been in the family for 50 years. My family's always run that business out of there. But what you forgot about was that six years ago, generation One, let's say the founders of the business passed on and handed you as the next generation handed you the building. Well, guess what, the depreciation clock just reset for you and you get to do the cost seg just like you had just bought it. But you didn't have to buy it. It came to you in a step up when generation one passed it on to generation two after a death. So even though the building's been around a long time and it's been in your family for a while, but upon death you would get to take that deduction just as if you bought it fresh.

What if you already cost seg the property and then you passed away and then your heir has got it, Would they be able to recoss it because the step up.

Correct. So that's actually a pro tip play that if, let's say generation one's getting up there and they know they want to solve an estate tax problem, so maybe they know that their estate planning attorney and accountant and advisors are, are telling them, hey, you've got a big tax problem when generation one passes on. So what they can do, maybe they don't have the money to buy a big life insurance policy to get the tax liability wiped out with insurance company money. Maybe they don't have that on hand, but they pay a bunch of income tax. Well, they could do a cost seg on the original building, grab that deduction, they now have that money in hand, they could go buy potentially a single premium life insurance policy that would solve that tax problem for them. And so okay, let's fast forward five or seven or whatever number of years generation one passes on that insurance policy, pays off, wipes out their estate tax problem. But that property now goes to generation two. All of that recapture that might have been in place if generation one sold the building because they passed on. They get the family member. Generation two gets that stepped up basis without regard to the prior depreciation that's already been taken. They get a clean slate at current market value as of date of death.

That's amazing.

It's a great, it's a great tool that good advisors will bring up to their clients.

And so if somebody buys a building, let's, let's assume it's back to 100 depreciation.

Okay.

Just for easy numbers and then we can explain what's going on in the politics and stuff right now. So let's say somebody buys a building for a million dollars.

Yep.

What could they anticipate that they would be able to depreciate from that building if they did a cost segregation study in year one?

Okay, great question. So the way it works, and I'll take you through it because a lot of people that are out there on the Internet, you know, you know, flooding, you know, paying for all those ads and all that stuff, they kind of skip over some of the details. And with our background of coming out with, we've got so many CPAs on our team, we don't mess around skipping over details. So the way it would work, your hundred, your million dollar purchase price, let's say the municipality says land is valued at 20%. Okay. Land value, meaning the dirt is non depreciable. Okay. So you paid a million bucks for the property. We've got to sub out land, land, 20%, 200 grand. So 200 grand is the land value. We can't do anything with that. But now you have 800 grand as the depreciable basis in your building. Okay. So that's what you're going to write off over 27 and a half year if it's residential rental, in other words apartments or 39 year if it's anything else. So if it's hotel, retail, office building, lab space, manufacturing, anything out there other than residential rental is 39 year life. Okay, so 800 grand over, I'll say 39 year life for now. But we do a cost seg. And so we come in and we identify that the IRS tax code will allow you to accelerate somewhere between 15 and call it 30% in a faster life. Now what that means is we're going to identify the assets that can go into a five year and a 15 year life. So we're going to identify those and let's say those come to 20%. So I kind of in the middle there of 15 and 30, let's say it's 20%. So now you get to accelerate and grab 140 grand out of that, excuse me, 160 grand of depreciation right now with 100% bonus. That 160 grand is coming off of your tax liability calculation. So you've got the million dollar property, 200 out for land, you're going to accelerate 160k and that means you get to use that 160k against your taxable income. So if you had 200,000 of taxable income, instead of paying tax on 200 grand of NOI as it would be called, you're subbing off 160 grand right off the bat. And so now you will only pay tax on 40 grand of NOI, if that makes sense.

Yeah, it's amazing. It's incredible. I hope everybody, if you got to rewatch it, rewatch it. But basically it just cuts, cuts your tax liability down so much. And if you are a real estate professional or your spouse is a real estate professional, someone in your household is a real estate professional, you can take that depreciation, that tax savings against your normal income, even if it's not earned from that property or from real estate. If you have that classification. And if you don't have that classification and you do, you are a professional. And nobody in your household is considered a real estate professional. You're just a working professional or a doctor or an engineer or whatever you are. What is a strategy that they can use to still get more benefits out of the cost segregation?

So there's a couple of things there. If they own multiple properties, we might do a cost seg on one of their properties. But the accelerated depreciation not only would go against the property we did the cost seg for, but they own four other buildings. And maybe you as their advisor, you as their loan person would know, oh, they've got this whole portfolio over there that they could do a cost seg on the newest building, but it's going to offset income from those other properties. That's kind of scenario one. Scenario two might be that you're trying to help them and they really don't like paying the tax and they want to do something to get into real estate. And how can they best do that? Well, they might like to use the short term rental opportunities that are present. So some people call it a loophole, but it's really not a loophole. It's, it's the way the Tax code is written and if you're short term rental, you can, because you're going to be actively involved in that process. You get to treat it as just like you own a hotel and you're actively involved in that hotel management. Well, you're actively involved in that short term rental property. So you're deciding, you know, you, maybe you're doing some of the work, maybe you're doing the lawn maintenance or the property maintenance or the taking out the trash or the changeovers, or maybe you're just helping find the properties, you're helping set the right rate and the terms and you're actively somehow involved in it. You get to use the losses created against your W2 and 1099 income as well. Then if you're in that space of the short term rental.

Yeah, and that's an amazing option that I see a ton of my clients do. They just buy some Airbnb properties and they actually are able to get the classification because it's a big, much bigger benefit if you are a real estate professional. But there's. That doesn't mean you can't have another source of income or you can't be working a job or be a contractor or whatever. There's ways to get that, that classification. And what. So right now cost segregation over the past few years has been phasing out. So, you know, now this year we're at 40% of the depreciation. So in that example where it was a $200,000 write off today, if you were to do that report, you would only get 40% of that immediately.

You still get the rest of it. It just won't be immediate.

Right. It's over the 39 years or whatever.

So the way that would work, you get the 40% the first year of purchase.

Okay.

Okay. The 60% is going to come into you over five years and 15 years.

Okay.

So you're still getting the, the total amount.

Just not up front.

You just don't get it the very first year. And if you don't mind, I'll give you a little history so you can kind of see the, the whole waterfront versus where we are now. And it doesn't sound as good.

Yeah.

But the reality Is since from 96 to 2017, so for 21 years, bonus depreciation, never ever applied to existing building purchases. Bonus only applied. And that Bonus applied after 9, 1101 for new construction. And that was an incentive to, to get the real estate market moving again that the Congress put in place. And they said any new construction project after 9, 1101 will get 30% bonus. And that didn't seem to be moving quick enough. So they moved it to 50% bonus. And that was around for a while and then it bounced around and it got to 100% at a certain point and then it backed down again. But the bottom line was from 96 to 17, bonus never would apply to an existing building, only new construction. During that span of time, we did about 15,000 studies. So we did a lot of work with people doing cost seg just to pull 5 year and 15 year out of 39 or 27 and a half. Because in and of itself that is powerful.

Yeah, okay.

To just get that five and 15 year out of 39. Well, in 2017, the administration at that time decided to incentivize real estate. He might have even been a real estate person himself. I don't know. I've heard that, but I'm not sure if that's true or not. But the new administration said, hey, wait a minute, Hannah, wouldn't you rather take that deduction now completely 100% a 5 year and 15 year in the first year you buy the property and you'd say, yeah, let's go. Well, that's what bonus became. So for existing buildings and construction, just like before, you got to take 100% of the 5 year and 15 year stuff, okay? But when they put that law in, they couldn't just leave it there because that could be a big tax impact nationally to the debt and all that stuff. So they can't just plug that in and say, okay, it is the way it is forever. Now, they had to build in a sunset provision. And that sunset provision started at the end of 22 into 23. The first stair step down was to 80%. So if you bought, built or improved a building in 23, instead of 100% bonus, it was 80% bonus. Okay? And then in 24 it stepped down again to 60% bonus. And in 25, we sit here at 40% bonus, and in 26 it'll be 20% bonus. And then theoretically in 27 it'll sunset completely and there won't be bonus. Now, with the new administration and the one big beautiful bill scenario that's been approved already by the House, it will bring back bonus depreciation to 100% as it sits as we speak, that will be retroactive to 120 of 25. So if you've bought, built or built a building since 120 of 25 in service, then you'll get 100% bonus. On that. I'm afraid I'm getting too deep. And if there was a chart here. Okay.

So, yeah, I mean, I'm for. I. I understand it because I do it, but it's. It makes sense. And people can research too, and start to dive into it. But the first thing is the awareness. Right. And I got a call from a cost seg person. I think it was probably in 2017. I didn't realize it wasn't around before then because that's when I started doing it.

Yeah.

And because I'm a commercial. I, you know, had commercial real estate brokerage. And so people were calling brokers and say, hey, your clients should be doing this. I was like, what is this that you're telling me about? And yeah, yeah, it's. It's been a beautiful, beautiful thing and it's helped me build wealth that I wouldn't have been able to build without it because I would have had to.

You know, just do a deadlift.

Yeah. Which is a lot harder. So it's nice to just not give as much money away as you don't have to.

Right. The tax laws let you do that.

Yeah.

Why would you not take advantage of that?

Yeah, no, it's pretty amazing. And so now the question is, what are the strategies? Because there's something called recapture. Now, if you do a cost seg and you invest the money, it's going to be different, varying on the property and the size and all that stuff. But you invest the money for the cost segregation stack study. But then if you want to sell that property, like, what are some of the risks that people have to be aware of if they do go sell that property, that they accelerated depreciation, and what are some ways that they can prevent that from happening and continue to kick the can down the road per se, and not ever have to have the recapture?

Well, the. The kick the can down the road is the classic 1031. Either prior statement to 1031 or after statement after you said 1031, you're kicking the can down the road on the tax on the gain. Well, within that same capability that the 1031 has. It also enables you to kick the can down the road on any recapture. Recapture is basically in the tax code provision that says if you've taken depreciation, when you're figuring out the gain on sale, you have to give back or count that depreciation you've already taken back. And with the cost secondhand, you're going to have a little bit more depreciation to add back in So I would say to you, Hannah, if, you know, going into this conversation, if you said I'm buying this building, we're going to own it a couple of years, we're going to do some fix ups on it and then we're going to sell it in two years. And I hate 1031. Let's say you got burned on them a few years ago somehow you weren't able to identify a property quickly enough and for whatever reason, philosophically you hate 1031s and you say I'm not doing a 1031. I, I would say to you it's probably not worth doing because if you're only going to hold the property a year or two and you're going to then sell it and you're not going to do a 1031, then probably the money that you save, that you pay to me to do this study and that money you're going to save, you're going to have to give back most of it in that short amount of time because of recapture. But if you said yeah, I'd consider 1031 and I'll plan and make sure that I have 1031 properties lined up for me to move into and so life is good, then I would say absolutely do it. Once you get to a three year hold with or without 1031, you start to get into the point where some of that recapture bite is not going to be as bad. In other words, it's the delta that you've taken early, but you have to give some of that back. Well, by the time you're into owning it for three years, four years, five years, that number of the give back will be less. Or because you've taken some of it early and you've held it long enough, but in a short, short term hold you can do that 1031 thing. So that's a really good tool that most people can get their arms around. You just have to set the 1031 up ahead of time. And that's not our space. But we know lots of people in that space. I'm sure you do. I'm sure other folks, you know, know people in the 10, the 1031 space.

Yeah, but when you do the 1031, I'm, I, we've been up since 3:00 clock so I'm starting to run on views. When you do the 1031, you buy an asset you cost second and then let's say in five years you want a 1031, do you? You still have a recapture but then you recoss the 1031 or you have.

No recapture, the recapture pushes out and you don't have to worry about that on the original property. And then when you buy the new property, assuming there's higher basis in the new property. So if you, if you're bringing forward, let's say, $1 million of gain and you buy a property for 1.1 million, let's say your new depreciable basis in that property you're buying is only 100 grand, it's not going to be exciting to do a cost seg on that $100,000 new basis.

So you're just kind of rolling it into the.

Well, where, where I'm going with that. But yes, you're rolling the gain into the new property, but let's say you've leveraged it because you're a smart real estate investor and you're not just going to swap evenly. You're going to say, oh, I'm putting a million down on this new building that I'm buying and I'm buying a $4 million building. Well, your new depreciable basis is 3 mil. You paid 4. You had a million dollars of gain coming in the 1031. So you've got 3 million new money in the game in that new property. So you would do a cost segment and that depreciable basis that we would be working on would be three mil. Okay, so that's like a really good scenario there. But if you were just swapping evenly, you're. You're putting in a mill and you're only buying a slightly higher value building, it's not going to look too good.

Right.

On the second building. It still works on the first building very nicely, but it's on that second project.

Yeah, because you view basically already depreciated.

Everything on the first.

On the first one.

Yeah.

And you're not recapturing it because you're moving it to the next building, but you're not buying a bigger building. So there's not much more to depreciate.

For that first scenario of paying 1.1 mil.

But you're right, but if we can all just make more money every year, buy bigger assets, keep rolling them into bigger ones, and then we're fine.

Yeah. And we have clients that do that all the time with, you know, having done this for so long. We've got clients that buy and sell hotels. They'll buy a hotel, put it in service, they'll use it for a few years, they get an offer, oh, wow, look at That I can get an extra million or 2 million and roll that into the next bigger property and you just kind of keep cycling that and you can build your, your wealth up very nicely.

Yeah, it's awesome. And for those of you out there who are, you know, maybe you are a full time employee of some sort or you don't want to go out and be in the business of real estate, you can also invest in a fund like, like, you know, Arthur's in your space America's storage development funds. And they will accelerate the depreciation and pass the K1 losses off to their investors. So it's a way to still take advantage of these strategies without having to go buy and develop and do all these crazy real estate deals. If you aren't in the business of real estate.

Right, right. It works out really well. And what we find is that within the industry there's an overarching group called the ascsp, which is the American Society of Cost Segregation Professionals. And it's the group that makes sure that the members of that are following the tax code and they're not going off the into the dark areas of the tax code or completely not following the tax code. And that industry group for us finds or estimates that only 30% of of the people doing real estate transactions that could take advantage of cost seg do it. Only 30%, meaning 70% of people don't hear about it from their attorney, their real estate agent, their real estate broker, or their accountant. And those folks need to hear from people like you that on this podcast that this is out there for them and they can grab this. It's not a gray area of the tax code. What is? You just want to make sure you're doing it with the right type of professional organization. Because the IRS tax code says for a quality cost seg to be admitted, you have to have it done by qualified professionals. You can't do a remote site visit. The IRS specifically says you can't do a remote site visit. You can't do a virtual site visit. They can't call you up and say, hey Hannah, let's do a FaceTime. And you can just walk around the building with your camera on your phone and show us the things we need to see. Can't do that.

Yeah. And now I'm worried because that's what my cost company does. So now I'm going to work with you 100%. And they had me do a FaceTime on my last study.

It's funny because it's gotten out there that remote and virtual are not allowed. So I've seen the most recent iteration of. Because I read a lot of these contracts because my clients I normally get from the CPA firms out there. So I get these clients that kind of want to use me, but they're saying, jeff, we've got this proposal from this other guy and he's maybe $1,000 or $2,000 less than you. Oh my gosh, what can you do? And I look at the contract and I say, let me make sure it's apples to apples. And they say, well, this one isn't remote, it's not virtual. But then I read it and it says the latest iteration, I'm laughing heartily at this, says non physical site visit. Okay, so what is a non physical site visit? Well, that is a remote site visit. And they say they're going to schedule it for somebody to remotely or non physically do the site visit. And I'm just like, there you go. You're not going to win if it's ever challenged. And that's a problem.

And what about obviously there's their online like pay 500 bucks or a thousand bucks or whatever for a cost study. You definitely don't want to do that. I know people that do that. And then also because who you work with is going to change the amount of money that you can depreciate because you really have to know what materials are put into the property and what fully you can appreciate. And if you're just being lazy about it or doing a general blanket cost sag, you're not going to get the most value out of that investment or out of the tax savings. So that was a big one you shared with me earlier today. And then what about different asset classes? Because I hadn't considered this before, and then Arthur brought it up in our podcast, is that, you know, storage can possibly have higher ability to cost segregate more bonus depreciate more than maybe some other asset classes. So what have you seen among the asset classes on. Because you, you gave a pretty big range, 15 to 30%. That's a big range. We're always going to want to target the 30%.

Everybody wants it. Yeah, everybody wants 30%.

Yeah.

Well, the scenario is it can be anything. So it could be hotels. Hotels, depending on the flag that is flying out in front of the hotel. You know, if it's a big brand name, like a big international brand name, they might have nicer stuff in there than maybe a lower end flag. You know, so you might have a big determinant Is, is what is inside of the physical building and then what is outside of the physical building. So if you think about it, anything outside of the physical building is going to be the 15 year category. So that means the parking lot, the driveway, the curbs, the planting beds, the irrigation systems, the retaining ponds, it might have, you know, a walking bridge to get over a water element. You know, it could be a golf course, you know, might have a lot of these things. And if it's all designed right, then these will give great results for the client. It could be apartments, office, any kind of medical facility. So any of these. So one of the categories to think about, and the big determinant on that 15 to 30% is, is if it's an urban setting. Imagine a hotel that's plopped down in the middle of. You name the city block, but it's basically the building, the hotel on the city block and there's sidewalk around it. Is there any real parking? Probably not. Are there any walking trails? Probably not. Any significant irrigation systems outside? No, probably not. No play areas, no tennis courts, no basketball courts, no outside swimming pool. Okay, well, there went. You're not going to get much out of 15 on that hotel or office building or apartment building in the downtown center of city. Whereas if you step out 5 miles, 10 miles, 20 miles, whatever the radius is, and now you've got a big parking lot and you've got maybe a kayak pond or a place that you can get on the river. So all of these things outside of the building are going to add to the 15 year category and that's going to give you, push you into that 20 to 30% range versus the 15 to 20% range.

Awesome.

If that makes sense.

Cool. Yeah, no, I love it. If anybody is not doing cost segregation, start doing them. And how can people get ahold of you? Because you're the best.

Why thank you very much. I'm sure the information will be in the link out of this, but if they wanted to get in touch with me and it would be great. Jdhostsegstudies if you want my email address there, I'm sure it'll be in the link and that's my email address. Of course, my mobile phone if you want that is 508-878-4846. If you want that in there.

Perfect. But yeah, it's up to you.

No, it's done by me. Like Arthur said, I don't mind getting the calls whenever I get them. So text whatever it is. Oh, and on Instagram, I'm depreciationdoctor. And that kind of came around. And so I have a big dog that is my depreciation spokes dog and his name is Thor. And going back to Roman times, back in the day, what we call Thursday used to be Thor's Day. And you know, in English, it's become Thursday. Well, every Thursday for me is Thor's Day, and I post a video of Thor or some of his cousins, which are big German shepherds doing fun stuff to find tax deductions for their clients. And so it's kind of a fun little thing. And then it's a good way to get some content out there for me.

That's awesome. I love the idea and the creativity. I know you had the creativity with this too, so.

Well, you know, walking around with stacks of money, I know mad stacks.

That's all everybody wants.

That's what it's all about. Well, thank you for having me on today and thanks for hanging out and going around all over the. The southwest here in. In the past day now. So it's been great.

It's awesome. Thank you so much for flying out from Florida and, and everything that you're doing in the. In your veteran support. You have an event coming up if you want to share that website too. He's very involved with veterans and you could share that real quick.

What we do, because my way of giving back to the folks that, that have actually protected the way that you do business, the way I do business, if we didn't have the veterans of our country, and that's typically about 1% of the population, actually protects all of the other 99% of us, if we didn't have them protecting us, we wouldn't be able to live our lifestyle. And so my way of thanking them, I never serve myself, but my way of thanking them is to help raise money for. For veterans and their families. And so I've been involved in a group out of the northern New England area called Swim with a mission or swam.org and in that time since 17, we've raised 11 and a half million dollars. We've given away hundreds of dogs for service dogs and support dogs. We've done homelessness resolution for people, getting them into housing. We've done equine immersion, art therapy, all kinds of different modalities to help the lives of veterans and their families. And so we've got a big event coming up in early July. And if anybody's Interested in that, swam.org It's a great group. We do a lot of fundraising for Navy SEALs and their families especially. And so I'm also involved with the Navy SEAL Museum down in Fort Pierce, Florida, if anybody wants to see the most awesome military focused museum, Fort Pierce, Florida. Navysealmuseum.org is a great group to check out, too.

Perfect. And Your next event's July 11th.

July 11th is our big paintball competition. We've got about 30 teams that are going to show up, and they'll all be there, and they'll each be assigned a Navy seal. So each team will get one Navy SEAL that they've heard about and learned from early in the morning, and then that SEAL will lead them for the rest of the day in a paintball competition against the other teams, the other 30 teams that will be there. Interestingly enough, we have the largest fundraiser using paintball as its promotion. We beat out William Shatner and Will Smith, who used to hold those records, but we've beat them out, and that's out of northern New England, in other words, New Hampshire. So it's a lot of fun, and it's. It's just incredibly cool. And you meet a lot of really cool Navy SEAL guys. It's a lot of fun.

Well, thank you for all your support in that and. And for all the money that you save all of us. So we appreciate you and look forward to getting to know you more.

Good deal.

All right, that's great.

Thanks so much.

Thanks for coming on the show.

Appreciate it.