Ever wondered how you could significantly reduce your taxable income from real estate investments in just one year?

In this episode, Mike Jesowshek introduces Gabriel Florentino from Engineered Tax Services to discuss cost segregation studies, a tax strategy for real estate investors aiming to accelerate depreciation deductions. Gabriel explains the concept and benefits of cost segregation, emphasizing its significant impact on reducing taxable income by identifying and reclassifying property components to shorter depreciable lives. The discussion also covers the importance of understanding accounting terms, the difference between cost segregation and traditional depreciation methods, and the added advantage of bonus depreciation introduced in 2017, which allows for even greater tax savings in the early years of property ownership.

00:00 - Introduction to Cost Segregation Studies
02:15 - The Basics of Cost Segregation
08:38 - The Impact of Bonus Depreciation
14:37 - Practical Examples and Cost Study Analysis
19:53 - Conclusion and Final Thoughts

Direct Quotes:

"You're segregating every single component of a property into different class life buckets compared to a long-term bucket." - Gabriel Florentino

"Even if it's sunsetting, there is still a huge benefit of doing a cost seg study on a property." - Gabriel Florentino

"Cost segregation study is still a strong tool because you're getting the real value of depreciation for a lot of components inside a property." - Gabriel Florentino


Connect with Gabriel!
Email: [email protected]
Website: https://engineeredtaxservices.com

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

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