Real Estate investing is seen as the holy grail of passive income and wealth independence. One of the popular facets of real estate investing is the tax advantage that much of the IRS code provides to the owner/operator. High on the list of cocktail party chatter topics is the concept of COST SEGREGATION. It is a way to deconstruct the components of real estate developments, depreciate them faster than the normal life of a building and net the deductions against other income. To explain this concept, MITCHELL BALDRIDGE joins the podcast. The Texas-based CPA and CFP will take us through the ins and outs of Cost Segregation Studies and discuss the importance of solid bookkeeping and delegation for entrepreneurs and other business operators

-Describing the concept – accelerated depreciation and deductions
-Potential benefits in numbers
-Types of projects where it works (Who is it for?)
-Process- getting study, dotting i’s, building in documentation now and forward
-Traps for the unwary- Sloppiness, Passive vs Active income, Full-Time Real Estate Occupation,
-Recapture- what it is and how to manage it

-Importance of dotting i’s
-Looking for tax savings
-Delegating intensive work
-Coordinating with advisors

https://www.betterbookkeeping.com/

https://www.recostseg.com/