Hey everyone,

If you’ve been following me for any length of time, you already know that I believe real estate is the single greatest wealth-building tool available to everyday investors like you and me. (Although, I’ll admit, Bitcoin is making a strong case to be in that conversation.)

But every once in a while, it’s worth stepping back and asking: Why has real estate created more millionaires than any other asset class—and why do the ultra-wealthy keep buying it, decade after decade?

It comes down to a unique stack of advantages that you simply can’t replicate anywhere else:

Now, here’s where things get truly magical: cost segregation combined with 100% bonus depreciation. These strategies let you front-load those tax deductions, often allowing you to write off a massive portion of your investment in the first year.

For example, let’s say you buy a property for $1 million and put down $300K. With a proper cost segregation study and bonus depreciation, you might receive a K-1 showing a $300K loss that same year. That’s a paper loss offsetting your taxable income—meaning money that would’ve gone to the IRS is now working to build your wealth instead.

And with Congress reinstating 100% bonus depreciation, this playbook for savvy investors is back at full strength. If you think about it, upfront tax savings alone can turbocharge your returns before you’ve even collected your first rent check.

This week on Wealth Formula Podcast, I sit down with Gian Pazzia, chairman and chief strategy officer at KBKG, to pull back the curtain on cost segregation and bonus depreciation. We’ll dig into:

If you’ve ever wondered how sophisticated investors legally shelter huge amounts of income while building massive wealth, this episode gives you the inside track.

P.S. If you want access to the “Do it Yourself” Cost Segregation tool mentioned in this podcast, you can access it HERE. Use the code FORMULAPROMO to get 10% off.