Are you interested in learning more about how cost segregation and depreciation can help you reduce your tax liability when it comes to owning real estate? 

 

Join us as we sit down with Yonah Weiss, a cost segregation expert in the commercial real estate syndication space, who has been teaching people about the tax benefits of real estate for 8 years.

Today, we explore how a cost segregation study can help you maximize deductions on your property, and how managing a short-term rental yourself can help you unlock bigger deductions against your active income. 

 

Tune in to get an insider’s look into what cost segregation and depreciation are all about and learn how these strategies can help you save money on taxes!

 

[00:01 - 08:04] Opening Segment

• Cost segregation and depreciation are tax benefits of real estate that can be confusing for people to understand

• How Yonah got into real estate and found another stream of income

• Yonah dives into depreciation and cost segregation

 

[08:05 - 15:16] The Basics of Real Estate Professional Status

• Understanding the basics of real estate professional status

• How can it help offset passive losses against W2 income?

• When you can use some of the passive losses against your active W2 income

• Being a realtor or broker automatically qualifies for Real Estate Professional status

 

[15:17 - 23:10] Understanding the Tax Benefits of Short-Term Rental

• Married couples making more than $150,000 may not be able to take advantage of the real estate professional status

• Regular depreciation and other expenses can reduce the rental income tax liability to zero

• Cost segregation can help pull forward some of the depreciation deductions to earlier years

• What realtors need to meet the material participation threshold

 

[23:11 - 30:30] Leverage the Short-Term Rental Loophole to Offset Active Income

• You can use concentration depreciation to offset your active income even if you have a full-time job

• You only need to spend 100 hours on a short-term rental for it to count as material participation

• Losses from passive investments cannot be used to offset short-term rental income.

• Conservation is a tax tool and should be used with an overall portfolio plan in mind.

 

[30:31 - 35:33] Closing Segment

• In 2017, 100% Bonus Depreciation allowed accelerated deductions in the first year

• This benefit was available until the end of 2022

 

 

Connect with Yonah:

 

Website: https://yonahweiss.com 

LinkedIn: Yonah Weiss

Instagram: @yonahweiss

Twitter: @yonahweiss

 

Don’t forget to check out The Weis Advice Podcast!

 

 

Key Quotes:

 

“Cost segregation is a tax tool. It is a tax strategy. But it is not going to work for everyone in every situation.” - Yonah Weiss

 

 

WANT TO LEARN MORE?

 

Connect with me through LinkedIn.

 

Or send me an email at [email protected]

 

Visit my website, www.luxe-cap.com, or my YouTube channel.

 

Thanks for tuning in!

 

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