bonus depreciation

The biggest real estate tax deduction is coming back. That’s right—100% bonus depreciation is almost cleared for a triumphant return as the House pushed a new tax bill to the Senate, one that includes some massive tax deduction potential for real estate investors and everyday Americans alike. So, why is this SUCH a big deal? We’ve got Brandon Hall, CPA, on to break down why bonus depreciation could save you tens, if not hundreds, of thousands of dollars. Everyone knows that real estate boasts some of the best tax benefits of any investment in the nation. But, the one tax benefit to rule them all is almost always depreciation. This tax write-off lets you expense a portion of your property every year and can turn your real-life gain into a paper loss, so you keep your cash flow while avoiding taxes. But bonus depreciation is like regular depreciation on steroids. And the tax benefits can be massive. So, how do you take advantage of this huge tax write-off? What do you need to know BEFORE you take it? And should you hold off on filing before this new bill passes? We’ve got answers to all that and much more in this episode, so stick around! In This Episode We Cover: Four of the hottest housing markets in 2024 that we’d flip houses or long-term invest in The high-priced coastal market that we love…but wouldn’t buy rentals in A snowy northeast market that has low prices and big rent-by-the-room potential  A sleeper city with a big price tag but solid investing benefits The not-so-sexy market that made the number-one spot and surprised us all Unemployment rates, home prices, average rents, and top metrics you MUST check before investing And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave's BiggerPockets Profile Dave's Instagram Henry's BiggerPockets Profile Henry's Instagram James' BiggerPockets Profile James' Instagram Kathy's BiggerPockets Profile Kathy's Instagram BiggerPockets' Instagram What Is Bonus Depreciation And How Does It Work? What is Rental Property Depreciation & How to Calculate It The Biggest Real Estate Tax Loophole You’ve (Probably) Never Heard Of w/Brandon Hall Connect with Brandon: Brandon's BiggerPockets Profile Brandon's LinkedIn Brandon's Website Brandon's X/Twitter Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-890 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

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

Big changes are underway in the U.S. tax code—and it could make a huge difference to your bottom line. Thankfully, today on the BiggerPockets Podcast, we get to sit down with two CPAs who focus entirely on helping real estate investors navigate the tax code! Amanda Han and Brandon Hall join us today as we dive deep into the new changes—plus tackle some of the most common questions new real estate investors ask! In This Episode We Cover: Who are Amanda and Brandon? Changes of the new tax bill What is passthrough deduction? Increasing the depreciation schedule The concept of cost segregation The 1031 exchange provisions have been modified Using 1031 Business interest limitation What is a tax shelter? Section 179 — write off 100 percent as an asset What can a investor do now? When do you need a CPA? Some more free tax advice And SO much more! Links from the Show BiggerPockets Forums BiggerPockets Money Show Forget BRRRR: Introducing the BARRRR Strategy for Investors (Blog) IRS Schedule E (PDF) BiggerPockets Blog How the Final GOP Tax Bill Will Affect Real Estate Investors (Blog) Books Mentioned in this Show The Book on Tax Strategies for the Savvy Real Estate Investor by Amanda Han and Matthew MacFarland Rich Dad Poor Dad by Robert Kiyosaki What Every Real Estate Investor Needs to Know About Cash Flow… And 36 Other Key Financial Measures by Frank Gallinelli The 4-Hour Workweek by Timothy Ferriss Building a StoryBrand by Donald Miller Tweetable Topics: “Hire the right people right away.” (Tweet This!) Connect with Amanda Amanda’s BiggerPockets Profile Amanda’s Company Website Connect with Brandon Brandon’s BiggerPockets Profile Brandon’s Company Website Brandon’s LinkedIn Profile Brandon’s Facebook Profile Learn more about your ad choices. Visit megaphone.fm/adchoices