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Wealthy Way

How the Wealthy Use Depreciation to Legally Pay Less Taxes

Wealthy Way

Ryan Pineda

Business, Entrepreneurship

4.82.1K Ratings

🗓️ 31 May 2025

⏱️ 13 minutes

🧾️ Download transcript

Summary

Most people think depreciation just applies to cars but real estate investors and entrepreneurs know better. From bonus depreciation to the short-term rental loophole, here’s how smart structuring and understanding the IRS code can lead to massive write-offs. Get access to our real estate community, coaching, courses, and events at Wealthy University https://www.wealthyuniversity.com/ Join our FREE community, weekly calls, and bible studies for Christian entrepreneurs and business peop...

Transcript

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0:00.0

If you're looking for a tax write-off this year, you need pre-tax.

0:04.5

Right.

0:05.0

Because anything post-taxes, you're paying tax on it anyways.

0:08.7

Yeah, that's right.

0:09.3

That's right.

0:09.6

There are some savers credits and things like that for smaller contributions into different

0:14.5

types of retirement accounts as well.

0:16.0

But it only really helps if your income, I believe, is below the 70,000 mark if you're married filing

0:21.7

jointly. So it's a pretty low bar in order to get that savers credit. Yeah. So let's just talk

0:27.1

about entrepreneurs and real estate investors, since that's most of the people that listen here.

0:32.1

And just in general, right, with tax strategy. So, you know, somebody was coming to you guys what's the first thing you

0:39.0

guys are doing so the first thing we're going to do is is look at their structures because people

0:43.6

come to us and they saw on tic-tok that you should have a trust or a Wyoming LLC and all those

0:49.4

things can have different benefits we're going to talk through structure one of the big things

0:53.4

with structure is people will own property in an S corp. We always want to get that taken away. You don't want

0:59.9

to own property in the S corp. And then beyond that, then we're going to start looking at what

1:04.9

properties they have, how much depreciation they've done. I actually had a guy come to me this year

1:09.7

and he had actually

1:11.5

fully depreciated a piece of real estate in year one when he came to me. And I was like,

1:16.7

hey, we got to fix this. So we're going to look through those things and figure out what the

1:20.9

situation is and then go from there with a game plan to make sure that they're doing things the

1:26.0

right way. Okay. So let's talk about

...

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