187: 100% Bonus Depreciation Coming Back? (Do NOT File…Yet) w/Brandon Hall

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 8 February 2024

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

The biggest real estate tax deduction is coming back. That’s right—100% bonus depreciation is almost cleared for a triumphant return as the House pushed a new tax bill to the Senate, one that includes some massive tax deduction potential for real estate investors and everyday Americans alike. So, why is this SUCH a big deal? We’ve got Brandon Hall, CPA, on to break down why bonus depreciation could save you tens, if not hundreds, of thousands of dollars. Everyone knows that real estate boasts some of the best tax benefits of any investment in the nation. But, the one tax benefit to rule them all is almost always depreciation. This tax write-off lets you expense a portion of your property every year and can turn your real-life gain into a paper loss, so you keep your cash flow while avoiding taxes. But bonus depreciation is like regular depreciation on steroids. And the tax benefits can be massive. So, how do you take advantage of this huge tax write-off? What do you need to know BEFORE you take it? And should you hold off on filing before this new bill passes? We’ve got answers to all that and much more in this episode, so stick around! In This Episode We Cover: Four of the hottest housing markets in 2024 that we’d flip houses or long-term invest in The high-priced coastal market that we love…but wouldn’t buy rentals in A snowy northeast market that has low prices and big rent-by-the-room potential A sleeper city with a big price tag but solid investing benefits The not-so-sexy market that made the number-one spot and surprised us all Unemployment rates, home prices, average rents, and top metrics you MUST check before investing And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave's BiggerPockets Profile Dave's Instagram Henry's BiggerPockets Profile Henry's Instagram James' BiggerPockets Profile James' Instagram Kathy's BiggerPockets Profile Kathy's Instagram BiggerPockets' Instagram What Is Bonus Depreciation And How Does It Work? What is Rental Property Depreciation & How to Calculate It The Biggest Real Estate Tax Loophole You’ve (Probably) Never Heard Of w/Brandon Hall Connect with Brandon: Brandon's BiggerPockets Profile Brandon's LinkedIn Brandon's Website Brandon's X/Twitter Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-187 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey, what's up, everyone?
0:08.2	Welcome to the Bigger Pockets Podcast Network.
0:12.0	My name's Dave Meyer.
0:12.8	I'll be your host today for this crossover event.
0:16.2	This show will be airing both on the Bigger Pockets real estate feed as well as the on the market
0:21.7	feed because we have a breaking news that's super exciting and interesting for real estate
0:26.8	investors and to help me discuss this my good friend henry washington is here with me today
0:32.9	henry how's it going man hey man so good be here. This is the ultimate asking for a friend episode.
0:41.3	I know where Henry's going with this because we obviously know what the show is about.
0:44.7	And it's about taxes.
0:47.3	And sometimes I admit, I don't always know what's going on with taxes, even as it relates to real estate investing.
0:56.7	Henry, if you were to rate yourself like one to ten, how well you understand taxes as it
1:01.5	pertains to real estate, what would you rate yourself?
1:03.9	I think I'm a solid two.
1:07.6	Okay.
1:08.5	Okay.
1:09.1	I was doing this exercise myself. I was like, I think I'm a three. And my goal for this year is to become a five. And I think if you get to be a five, you're probably in a pretty good shape. And that's what we're hopefully going to be doing with this episode. I think by the end, you and I, that's our goal year today. and everyone listening to get ourselves to a five out of ten with real estate taxes.
1:32.2	Because as you probably know, if you're listening to this show, real estate obviously offers cash flow, appreciation, loan pay down, all these great things.
1:40.0	But tax benefits are one of the most important pieces of the return puzzle for real estate
1:46.6	investors.
1:47.4	And there's been some really interesting news about the tax law as it pertains to real
1:52.4	estate over the last couple of weeks.
	...

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