Video Closed Captioning:
good morning good afternoon good evening
folks michael’s uber one rental at a
time and we are back with our monday
guest mr david weiner we’re going to
talk about cost segregation and saving
you all some cash
how you doing david i’m doing great how
about you michael i’m doing well i got
to tell you you’ve quickly morphed into
a pretty popular guy on my channel you
know it’s it’s fun to see i like being a
popular guy you know
your channel’s become a favorite of mine
so uh
watching all kinds of your videos yeah
everybody i do put out a lot of videos
but it’s fun to do it’s fun to help
people and what you have brought to the
table is a education
right you have first brought the ability
to understand how you can legally use
the tax code to save uh money right to
get a tax deduction and actually save
cash you brought to us even advanced
things that were brought up by the jobs
act right because cost segregation has
always been there but it’s the special
sauce of cost segregation and bonus
depreciation that we have available for
one more year yes folks we’ve got the
special sauce for one more year full
discount then it kind of goes 80 60 40
20. we’ll talk about that later but
david i think you have a real life
example of a four-plex
that somebody’s putting some pretty good
money away
i do actually let me let me show you
what this looks like
um
if i can find it here okay go there you
go this is one that i just went over
with one of your folks just a little bit
ago awesome
and this is a four plex that he’s got
we determined that the building cost
minus the land was 563 thousand dollars
so let’s break that down for folks so
the reason you want to subtract the land
folks again is land is not depreciable
if you don’t know about that you can
talk to your accountant but yes you buy
a you buy a four plex for 700 grand you
must figure out the land value because
the only part that you can depreciate is
the building cost this is all
all up to snuff and again remember after
bringing david on the channel i brought
on a cpa uh to go through this so it’s
all in the video series so thank you
very much for that david so 563 is the
building cost well we assume
most of the time when a building is new
when it’s newly purchased they know what
the purchase price is but they haven’t
talked to their cpa yet and backed out
the land value and that sort of thing so
we just assume 20 of it is land it may
be more than that it may be less than
that depending on where you are in the
country and but you must ballpark
something yeah yeah so
taking 20 off of his purchase price plus
any renovations that he did we came up
with a cost basis that’s depreciable of
563 000. makes total sense he’s had it
for the entire year he acquired it in
january of 2021 so he’s had the property
for the entire year yeah and the reason
that is important folks is again is if
you bought it in say december you would
only get one month of depreciation for
2021 uh but here you’re going to get the
full 12 months and again
segregation study you would only get one
month yeah exactly that’s a good good
point good point as yes good point but
yeah this is these are all this is why
this is legal this is why it’s going to
work when you file your tax returns
because everything is matched to the
accounting standards so just want to
just want to highlight that for folks so
the typical way of depreciating a
building and it’s the easy way and
that’s why most it’s the lazy way i’m
sorry did i say that out loud
um
michael zuber says that it’s the lazy
way
i say it’s the typical way but to
depreciate it straight line you would
take 127 and a half
off of it every year so they’d get a
depreciation for 20 21 of 19 621 yeah
folks again this is all very easy if you
just want to take 563 divided by 27.5
you will get 1961.
[Music]
by doing a cost segregation study what
we do is
not every asset in the building has a 27
and a half year depreciable life but
it’s kind of easy to look at it as one
big thing and not have to worry about it
with a cost segregation study we
actually pick apart all the different
pieces and parts we determine what’s
five year depreciation what seven year
depreciation what’s 15 year depreciation
according to the tax code
and we break those apart
now because of as you said the tax codes
and tax cuts and jobs act in 2017 we’re
able to take all of that five seven and
15-year property 100
the first year
so rather than him taking 19
621 dollars of depreciation this year
by doing a cost segregation study he’s
going to take 128
256 of depreciation
off of your taxes non-cash deduction
non-cash expense yeah boy it’s it’s the
real estate investor’s best friend is
depreciation
even better yeah so
first off depreciation not in cash
expense again it’s often backed out if
you’re buying or using uh getting a loan
or something because it’s not cash right
it’s a legal tax deduction uh against
passive income buildings wear out and
things
wear out over time
um
the the bonus depreciation was actually
given to us
as a stimulus for people to invest in
the economy back in 2015 when things
were
pretty rough and you know um we were all
dealing with all the covet and
everything you know
i guess that was before covet but
to stimulate the economy they were
encouraging
people to invest back into the economy
so they said just take all the
depreciation now then you’ll have all
that extra cash well in this guy’s case
the extra cash works out to be
conservatively
an additional forty thousand two hundred
and ten dollars off of his taxes
cash
yeah and he had two buildings both of
which were about forty thousand dollars
off of his taxes yeah so let’s just walk
everybody through this right this again
if something is out there for the little
guy which i include myself in i’ve done
a duplex through your process david
you’ve helped me with those thank you
very much for that uh but but uh so a
couple of things first off doing it the
lazy way you save 19 grand
on a tax deduction doing it the way that
is 100 legal it’s going to be 128 so the
delta is 108 maybe 109 000
that 109 000 is a deduction which turns
into at a 37
tax bracket 40 000
in cash
so uh that is very very powerful but i
also want to talk here this is what the
big boys usually do right so if this
building cost instead of 563 was 5
million 630 grand
even better right and this is why you
see some very large apartment
syndicators talking about doing a 750
million dollar deal here in december uh
i’m gonna just do some really quick math
just because i want to
so there’s a big syndicator out there
that is raving about doing a 750 million
dollar deal let’s see if my calculation
even has enough zeros in it it does okay
so let’s times that by 0.8 because again
actually you know this times it by 0.75
because we got to back out land
right so that’s now
562 million dollars
uh what did we get here so of the value
128 five so it’s about 30
um
yeah well
this is about 20 okay so it’s about 20.
okay so the bonus is 20. so okay let’s
do that times
0.2
so that’s 112 million dollars in
depreciation which he will take in
december because it closed in december
now let’s see this guy makes it has to
pay taxes at point 37 percent because he
lives in a non
stack non-state tax times 0.37
so this individual just produced 41
million dollars in year one tax that’s
cash now what’s he going to do with that
41 million i don’t know he’s gonna buy a
private jet i think if you watch his
instagram another apartment company yeah
of course
yeah because the jet deductible as well
oh my god this stuff is amazing so this
is why folks have been big on
syndications big on apartments because
of bonus depreciation it’s making year
one profit look a lot better it’s
allowing people like that to hide their
education money and all of these legally
legally right now legal deductions this
isn’t free no the study costs money
and and people say well then all my
depreciation’s gone i won’t be able to
take any later yeah you will here’s what
it looks like exactly call up front
you’re going to take a little bit less
every year till the end of the property
life
but you’ll still get plenty of
depreciation the rest of the property
life
this study is going to cost him
and forty dollars there you go that’s
also tax deductible so his net cost is
going to be
3 175
in order to save
40 000 in cash talk about 10xing your
money that’s actually a 13x so you spend
three to get 40.
not bad
not a bad deal i think i think i would
do that
i would do that all day long i think i
do that twice
and then you might run into problems
with the irs but no two different
buildings two different buildings two
different buildings that would be good
that works um yeah and uh i i asked him
if if he
had an 80 000 tax burden to to take care
of this year and he said um
yeah probably yeah not anymore
not anymore he’s gonna have zero and he
said there might be a little bit less
than that and i said great then then
ten thousand left over you can carry it
on to next year and take that off of
your taxes next year that’s awesome man
well this is why that’s why you’re an
expert on the channels because you are
bringing something that the average the
little guy doesn’t know cost segregation
has been around for years the big boys
have used it it’s it’s now available
with firms like you for the little guy
bonus depreciation makes it extra extra
extra extra special because again if we
didn’t have bonus depreciation
you know 150 000 deal may not make sense
but because you can do the bonus
depreciation year one it makes all sense
of the world again if people want to
reach out to you david what is your
phone number to start the communication
okay so they can text me at 770-367-8091
or they can email me at david
david.weiner
w-i-e-n-e-r remember i before e accept
after c
at cost
segregationservices.com folks i
recommend texting him to get this
started because he’s very very busy one
more time david what’s the text number
770-367-8091 and i’ll send you a link to
schedule about a 10-15 minute phone call
with me will determine if this will work
for you
if it’s a good idea and i’ll get you the
free estimate so you’ll know exactly
you’ll have all of this where you’ll
know exactly what it’s going to do for
you and that’s actually a very good
point because this report that we are
looking at here this is the free
estimate you don’t spend any money you
spend a couple of minutes
looking at maybe it’s 30 minutes total
right 10 minutes up front 20 minutes
going through this with david then you
decide what you want to do up until this
point entirely free
absolutely and um
you know if when we go over this
together in a zoom call if they want to
bring their tax professional along the
call as well that’s perfectly fine i’m
going to ask them for their tax
professionals name and number because i
might have a few questions for them that
i need to ask and they definitely need
to know that we’re going to coordinate
with them provide them the necessary
forms to file they don’t have to fill it
out or do any of that kind of stuff and
provide them with the new depreciation
schedules it’s like falling off a log
it’s easy easy cool and worth a ton
very cool dave well thank you very much
for doing this every week this is
awesome folks again reach out to david
if you want to consider this for
something you purchased this year and
you can actually all the way back to
what 2017
actually i we can do any property that
you’ve well here’s here’s kind of the
guidelines that i use if the if the
value of the property not including the
land is 150 000 or above or if you don’t
know what that is if your purchase price
was 200 000 we’re good um and you could
have owned it for at least
you could have owned it for up to 15
years and a cost segregation study still
makes sense for you so get the estimate
we’ll find out exactly how much and then
you can decide i like that get the
estimate great advice thanks david thank
you michael