The Best Real Estate Tax Strategy - How Cost Segregation & Bonus Depreciation Save You Millions | Wise Investor Segment

Millionaire Mindcast

Matt Aitchison

Productivity, Stocks, Realestate, Lifestyle, Finance, Commercialrealestateinvesting, Personalgrowth, Entrepreneur, Business, Entrepreneurship, Rich, Mastermind, Money, Personalfinance, Millionaire, Mentorship, Realestateinvesting, Success, Mentor, Wealth, Investing, Millennials

4.4 • 716 Ratings

🗓️ 13 June 2025

⏱️ 11 minutes

🔗️ Recording | iTunes | RSS

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Summary

Want to keep more of your hard-earned real estate profits? In this episode of Wise Investor Segment, host Matty A. breaks down two of the most powerful (yet underutilized) tax strategies in real estate: cost segregation and bonus depreciation.

Discover how savvy investors legally accelerate depreciation, dramatically reduce their taxable income, and unlock massive cash flow—all without buying more properties. Whether you’re a seasoned investor or just breaking into the commercial space, mastering these strategies could save you hundreds of thousands—or even millions—over time.

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Transcript

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0:00.0	What's going on wise investors?
0:06.6	Let's kick it off with a quick breakdown on what is cost segregation.
0:11.2	Now, cost segregation is a tax planning strategy that lets you accelerate depreciation
0:17.6	by reclassifying parts of a property into shorter depreciation schedules, things like
0:23.2	a five, a seven, a 15 year depreciation schedule instead of the usual 27 and a half or 39 years.
0:30.5	Now, you can depreciate things like flooring, cabinets, lighting, parking lots, landscaping, so much more.
0:37.1	I mean, literally all the way down to the
0:38.7	nails and the screws used in your building. And what does this mean for you? Well, that means
0:43.9	faster write-offs, lower taxable income, and of course, higher cash flow. So let's talk about
0:50.5	what is bonus depreciation and the difference difference because this is where you can really pour
0:56.3	some rocket fuel on your investment strategy. Bonus depreciation allows you to immediately
1:02.6	deduct a percentage of those reclassified assets in the first year you buy the property, which
1:10.4	is absolutely massive for playing the tax
1:13.6	game at the highest level when you're a real estate investor and you have a lot of taxable
1:18.0	income. And as of 2025, bonus depreciation right now is at 40%. It's been getting phased out
1:24.3	20% each year down from 100%. But there is a push to bring it back under the
1:30.2	Trump administration to 100%. And this is under Trump's proposed big, beautiful bill. And if passed,
1:37.9	that means even more upfront tax benefits for commercial real estate investors like you and me.
1:43.5	So now that you understand what cost segregation studies are and how they can be
1:47.9	leveraged through bonus depreciation, understanding the tax codes, which of course I would
1:52.5	always recommend you talk with your tax attorney, a CPA, right, that can help you understand
1:57.8	based on your specific tax situation, how to best leverage this
	...

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