How to Make Tax-Free MILLIONS with a Cost Segregation Study

How to Make Tax-Free MILLIONS with a Cost Segregation Study

Episode #823

What’s the key to paying ZERO taxes? A cost segregation study. Never heard of it? Most real estate investors haven’t, but we’re about to unlock a world of tax-free income earning using this specific tool. If you’ve wondered how the wealthy pay such few taxes while owning million-dollar-producing real estate, this is how. In today’s episode, you’ll learn how to use cost segregation, too, so you can keep more money in your pocket.

Taxes aren’t everyone’s favorite subject, but paying fewer taxes? You can probably get behind that. We’ve brought on CPA and CFP Mitchell Baldridge to explain how he helps real estate investors, large and small, delete their taxable income and build their real estate portfolios faster. Our own Rob Abasolo uses Mitchell’s team to cut his taxes down by more than six figures!

In this episode, we’ll explain what cost segregation is, why so many top real estate investors use it to lower their taxes, when you can (and can’t) use it on your properties, the short-term rental tax “loophole” to take advantage of, AND what happens when you do it wrong.

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Can a Cost Segregation Study Help You Lower Your Taxes?
https://www.biggerpockets.com/blog/cost-segregation-real-estate?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Mitchell:
Baldridge Financial: https://baldridgefinancial.com/
Better Bookkeeping: https://www.betterbookkeeping.com/
RE Cost Seg: https://www.recostseg.com/
STR Cost Seg: https://strcostseg.com/
Twitter/X: @baldridgecpa or https://twitter.com/baldridgecpa
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Rob: https://www.biggerpockets.com/users/robuilt?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Rob (Robuilt):
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YouTube: https://www.youtube.com/c/Robuilt
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Show notes at: https://www.biggerpockets.com/blog/real-estate-823?utm_source=youtube&utm_medium=description&utm_campaign=none

00:00 Intro

02:31 Quick Tip

03:56 The Tax-Free Strategy

07:24 Cost Segregation Explained

16:33 Bonus Depreciation

22:07 How to Write Off W2 Income

28:38 The Short-Term Rental “Loophole”

37:07 The Free Down Payment Property

41:04 It’s NOT Too Late

43:06 Caveats and Risks

52:07 When is Cost Seg Worth It?

55:08 Connect with Mitchell!


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