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Investing in Real Estate with Clayton Morris | Investing for Beginners

1175: Q&A: What's the Difference Between Bonus Depreciation and a Cost Segregation? - Episode 1175

Investing in Real Estate with Clayton Morris | Investing for Beginners

Clayton Morris

How To, News, Education, Business News, Business, Investing

4.41.1K Ratings

🗓️ 21 July 2025

⏱️ 15 minutes

🧾️ Download transcript

Summary

What’s the difference between bonus depreciation and a cost segregation, and can they coincide? That’s the first question I’m answering on today’s Q&A edition of Investing in Real Estate!
This encore episode features three great listener questions on tax strategies, getting started in real estate with no money and bad credit, and the truth about elevated home prices. I’m also going to be sharing some news about the impending bank crisis and the future of commercial real estate. Click play to hear my answers to your real estate investing questions!

Transcript

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0:00.0

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0:59.9

So our first question comes to us from Aaron.

1:02.8

Hey, Clayton, this is Aaron in Nebraska.

1:05.9

My family and I just built our own fourplex.

1:09.3

We just finished it here recently and currently

1:11.8

have three out of the four units least already. My question is now that we're coming up on

1:17.9

tax season, I'm still confused by the difference between bonus depreciation and doing

1:25.1

a cost segregation or how they coincide or not.

1:32.5

So, yeah, if you could explain that, that'd be great. Thanks.

1:35.7

Thanks, Erin.

1:36.3

Well, first, let me just say I'm not a tax accountant.

1:38.5

And number two, the second thing I'll say on this is you absolutely want to make sure as a real estate investor,

1:43.5

you're working with a tax team that understands real estate. We worked in New York City with a guy who didn't understand real estate investing. So guess what? We fired him. I mean, in a nice way, but we moved on to a new tax attorney and a team over at Wealthability. And Tom Wheelwright's great team, that's who we ended up working with. Now, you don't have to work with them. You could work with another accountant that understands real estate, understands cost

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