Meetup: Cost Segregations Lower Taxes in Real Estate Investments

Well yeah, I mean real estate is always talked about as one of the most tax advantaged type of investments and the reason why that is is because of depreciation. I mean depreciation is a deduction. It's an income tax deduction that comes along with an investment property. You literally get to write off the entire value of your purchase okay over a long period of time. So cost segregation comes in and that's the ability to kind of refund focus that depreciation and front load certain portions of that so that you can take huge tax deductions up front. And so really that's where it ties into real estate. And I think that gets overlooked because people think about oh the tax advantages but they don't really dig into it. Sure there's a lot of tax advantages like refinancing a property that's tax free money. Okay 1031 exchanges people know about, they've heard about but depreciation everyone also knows about. But the kind of detailed advanced form of that conservation very few dollars.