#taxes #investing #depreciation
How the Wealthy Use Depreciation to Reduce Taxes
The #1 way reduce your tax bill is using depreciation buying commercial real estate. In todays show I will demonstrate how I use real estate to reduce my income tax bill....
The term depreciation refers to an accounting method used to allocate the cost of a tangible or physical asset over its useful life or life expectancy.
Depreciation represents how much of an asset’s value has been used.
real estate depreciation is perhaps one of the most underrated benefits of investing in commercial assets. Aside from the greater majority neglecting to recognize its existence, few people on the outside looking in can see past the profit margins that have become associated with commercial real estate.
Consequently, and to the surprise of many, commercial property depreciation is just as valuable as cash—if not more so.
Acting as a tax shelter for savvy commercial real estate investors, commercial depreciation contributes to investors’ bottom lines by reducing their taxable wages, adding a whole new meaning to the phrase “addition by subtraction.”
To create a universally applicable process, the IRS has set depreciation periods for real estate.
For residential properties, the depreciation period is 27.5 years. With Cost Segregation Study we can accelerate our schedule….more on that later.
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This is not an offer, solicitation of an offer, to buy or sell securities nor a recommendation to buy or sell any securities. Past performance is not an indication of future results. Investing involves risk and may result in partial or total loss. Prospective investors should consider carefully investment objectives, risks, charges and expenses, and should consult with a tax, legal and/or financial adviser before making any investment decision. For additional information, visit www.cardonecapital.com/disclosures.
