In episode 20 of the “Jose Luis Morales Show,” I speak with special guest Yonah Weiss from Madison Specs to discuss saving money on your taxes.
Yonah Weiss, today’s guest on the “Jose Luis Morales Show,” has helped me save a lot of money in taxes over time, so who better to help me address some strategies that you can use to save on your own taxes? He works for Madison Specs, a cost-segregation company, which is something that all real estate investors absolutely need to know about. By the end of today’s show, our goal is for you to walk away with your mind blown.
Feel free to follow our discussion in the video above, or else you can use the timestamps below to navigate the conversation at your leisure:
1:54—A little-known benefit of investing in real estate: depreciation
4:01—Putting depreciation into simpler terms
5:05—How does cost segregation work?
7:55—“Sprinkling magic fairy dust on your taxes”: How cost segregation benefits real estate professionals in particular
10:21—To count as a real estate professional for the purposes of cost segregation, you don’t need a license
12:40—What is “bonus depreciation?”
15:09—How Jared Kushner has a net worth of $300 million but hasn’t paid federal income taxes for 10+ years
16:31—How does cost segregation benefit different asset classes?
20:29—Does cost segregation deduction have to be added back on the sale of the property as well?
22:10—A strategy seasoned investors use to defer taxes
23:45—Is there a minimum dollar amount at which point it doesn’t make sense to do cost segregation?
25:57—A real-life example of the benefits of cost segregation
27:35—What does bonus depreciation look like over the next five to 10 years?
30:25—Would this disable you from qualifying for a loan?
31:30—Can you only do a cost segregation study when they buy a building, or can they do it later after a major rehab?
34:46—On cost segregation and rehabbing
38:20—How to contact Yonah for more advice and answers to your questions
I recently worked with Yonah for a cost segregation study that we did, and my experience was nothing but positive. I look forward to working with him more in the future.
If you have any other questions about real estate investment, don’t hesitate to reach out to me. I’d love to hear from you.