meta_pixel
Tapesearch Logo
Log in
Jake and Gino Multifamily Investing Entrepreneurs

What is Cost Segregation and How Does It Work for Multifamily Investors

Jake and Gino Multifamily Investing Entrepreneurs

Jake & Gino

Buyingapartmentbuildings, Investingsmart, Multifamilyrealestateinvesting, Business, Smartinvesting, Jakeandgino, Apartmentinvesting, Investing, Commercialrealestateinvesting, Makingmoney, Buyingrealestate, Realestateinvestment, Wheelbarrowprofits, Realestateinvesting, Cashflow

5 β€’ 831 Ratings

πŸ—“οΈ 1 May 2023

⏱️ 11 minutes

🧾️ Download transcript

Summary

In this video, we will discuss an essential tax strategy for multifamily investors - cost segregation. Cost segregation is a tax planning technique that can help multifamily investors increase their cash flow by accelerating depreciation deductions. First, we will explain the concept of depreciation and how it applies to real estate investments. Then, we will dive into the details of cost segregation, including the different types of assets that can be reclassified for tax purposes, such as building components, land improvements, and personal property. We will also discuss the benefits of cost segregation for multifamily investors, including the ability to reduce taxable income, increase cash flow, and potentially defer taxes. We will explore how cost segregation can help investors optimize their tax strategy and maximize their return on investment. Additionally, we will cover the process of cost segregation, including the documentation and analysis required to perform a cost segregation study. We will also discuss the potential cost savings and return on investment of a cost segregation study, and the importance of working with a qualified and experienced cost segregation professional. By the end of this video, you will have a clear understanding of what cost segregation is and how it works for multifamily investors. Whether you are a seasoned real estate investor or just getting started, cost segregation is a tax strategy that you don't want to overlook. In a nutshell, Cost Segregation helps multifamily investors/syndicators in: βœ” Reducing taxable income and increasing cash flow through accelerated depreciation deductions βœ” Potentially deferring taxes and freeing up capital for other investments βœ” Optimizing tax strategy and maximizing return on investment βœ” Identifying assets that may qualify for bonus depreciation under tax code changes βœ” Potentially reducing the recapture tax upon sale of the property βœ” Providing a detailed analysis of the property's assets, which can be used for insurance and property tax purposes βœ” Potentially improving the accuracy of financial reporting and valuations for the property βœ” Helping investors stay compliant with IRS regulations and avoid potential penalties or audits. We're here to help create multifamily entrepreneurs... Here's how: Brand New? Start Here: https://jakeandgino.mykajabi.com/free-wheelbarrowprofits Want To Get Into Multifamily Real Estate Or Scale Your Current Portfolio Faster? Apply to join our PREMIER MULTIFAMILY INVESTING COMMUNITY & MENTORSHIP PROGRAM. (*Note: Our community is not for beginner investors) πŸ‘‰https://jakeandgino.com/apply About Jake & Gino Jake & Gino are multifamily investors, operators, and mentors who have created a vertically integrated real estate company. They control over $250M in assets under management. They have created the Jake & Gino Premier Multifamily Community to teach others a simple three-step framework for investing in multifamily real estate. Connect with Jake & Gino on the social media platform you are most active on: https://jakeandgino.com/link-tree/

Transcript

Click on a timestamp to play from that location

0:00.0

Taxes are written to stimulate behavior.

0:04.2

So why would the government want you to give cost segregation or get that benefit if you're a multifamily investor?

0:10.8

Because the government cannot build and create affordable housing. All right, Jinguino here, and today we're discussing the tax benefits of multifamily investing.

0:42.4

Gino, I just wrote a fatty. What's a fatty? Now we're not talking about weed. We ain't druggies over here.

0:46.7

We wrote a fat check to the IRS because, hey, we still got to pay taxes. But it would have been a lot worse if it wasn't for the depreciation that

0:54.6

multi-family investing provided for us. How you doing today, Big Dog? I don't know. I'm confused

0:59.7

right now. Fatty's writing checks. What are we talking about today? We're talking about the tax

1:04.0

benefits of multifamily investing, Gino, okay? And, you know, unfortunately for you right now,

1:09.7

you're going to break it down for us.

1:11.0

So if you're not prepared for this, I don't know what to say.

1:13.4

I'm kidding. The Gdad always brings it. He's ready to go.

1:16.2

So let's get into the nuts and bolts.

1:18.3

You're going to talk about some, you know, economic geo, macro, whatever's here in a second.

1:24.2

So let's break it down for folks. Let's start with cost segregation. What is

1:27.9

cost segregation and how have we used it in our investing strategy? This is what I love about Jake.

1:33.7

He just loves to jump into things. He doesn't give me a second. Camel ball. You know, my father always

1:39.7

told me, Gino, it's not what you make. It's what you keep. I'm like, yeah, what do you know, dad?

1:45.7

What are you talking about?

1:46.7

Then I got my first paycheck and I was like, okay, maybe he had a little merit.

1:50.3

Maybe he had a lot of merit.

1:53.4

And about three months ago, my 14 year old, soon to be a 15 year old daughter got a job.

1:58.2

And I started trying to explain to her about taxes and she started

...

Please login to see the full transcript.

Disclaimer: The podcast and artwork embedded on this page are from Jake & Gino, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Jake & Gino and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.

Copyright Β© Tapesearch 2025.