I'm going to give you the top seven tax write-offs that every real estate investor should be getting

if they are trying to save all their money and not give it to the IRS.

Now, some of these you may have heard before, but what most people fail to realize is how much

deeper they can actually go and how much more they can write off.

So I guarantee this video will save you thousands of dollars on your tax returns with just one thing that you pick up from it. If you're new to my channel, my name is Ryan Paneda. I've bought and sold over $100 million worth of real estate, and I founded multiple seven and eight figure businesses. And one of the businesses that I founded was actually a tax firm, where we grew it from zero to multiple seven figures a year. So when it comes to saving money on taxes, I've got a lot of experience in the space. Now, the first one that everyone hears about, but doesn't really understand, is depreciation. Now, depreciation applies to lots of different things for business, but in the case of real estate investors, there are two main ways that we use depreciation. The first is with rental properties, and then the second is with

vehicles. So let's talk about rental properties and depreciation for how it works. Essentially,

every time you buy a rental property, they allow you to take that property and write off a portion

of it every single year. And the reason they allow you to do this is because they're basically

saying, hey, over time, this building is going to keep getting worse. It's going to need repairs. It's going to need maintenance. And so we're going to allow you to write off those every single year because we just know it's going to happen eventually. And so their formula is pretty simple. They take the building value of your property and divide it by 27 and a half years.

But basically, here's how it would work in an example.

Let's just say that there's a property that you paid $300,000 for.

They're going to take the building value of that property.

In this case, for easy math, let's say it's $275,000 is the cost of the building.

That would mean that they value the land at $25,000.

Now, this is a very likely scenario in a place where land isn't really that valuable, and the home

itself is the main value. This is not how it would be in a beach town in California where you got

this thousand square foot home, and all of a sudden the home is worth $4 million. Clearly the home is not the valuable thing in that case. It is the land that the home is

on. So going back to our more easy example, let's just say the building value is $275,000 on this

$300,000 property. What you're going to do on a normal depreciation

schedule is just take the $275,000 and divide it by 27.5 years. When you do that, it basically

says that you're going to get a $10,000 per year tax write-off. So even if you don't spend $10,000

on the home fixing it up, repairing things, doing maintenance, you still get a $10,000 a year write-off because the IRS says, hey, it is going to cost you at some point. So we're going to allow you to start writing this thing off because we believe in 27 and a half years you're basically going to have to replace everything. Now, that's pretty good. $10,000 a ride-off is awesome, but this isn't

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