Talk about an eye-opening episode with Yonah Weiss… we discuss the power of cost segregation as a strategy to minimize your tax liabilities when investing in commercial real estate, as well as the power of being classified as a “real estate professional” in the eyes of the IRS. This is an episode where you’ll be giving your accountant a call once you’re done listening and asking them how you can implement these strategies!
Yonah is a powerhouse with property owners’ tax savings. As Business Director at Madison SPECS, a national Cost Segregation leader, he has assisted clients in saving tens of millions of dollars on taxes through cost segregation. He has a background in teaching and a passion for real estate and helping others. He’s a real estate investor and host of the new podcast Weiss Advice.
Show Notes:
4:00 Yonah shares his background as a teacher and how he got into real estate.
7:35 Yonah gives a high-level overview of cost segregation and we discuss the power of depreciation in real estate.
12:28 We discuss how depreciation works and how important it is for real estate investors to understand and utilize it.
17:48 Yonah discusses who he works with most on tax deductions and how it offsets rental income and other forms of income… and how wholesalers and flippers can benefit from depreciation, even if they aren’t buying and holding (this is huge)!
20:52 We discuss bonus depreciation and how you can take it all in year one with new tax reforms.
27:55 Yonah shares what kinds of buildings (price and size) most benefit from cost segregation studies.
31:10 We discuss where Yonah believes that his method works best, according to land value and state laws.
34:05 Yonah shares the process of performing a cost segregation study and what it looks like.
39:32 We discuss how depreciation deductions differ within each asset class (multifamily, office, retail, industrial, etc).
45:04 Yonah shares what he attributes his success to and what his short term goals are.
CONNECT WITH YONAH
https://madisonspecs.com/ https://www.instagram.com/yonah_weiss/ https://www.linkedin.com/in/cost-segregation-yonah-weiss/
CONNECT WITH AXEL
https://www.instagram.com/multifamilywealth/?hl=en https://www.linkedin.com/in/axelragnarsson/ Download my investor toolkit (cash flow calculator, investor pitch deck, scope of work template, and renovation checklist) here.
