You can be a tax hero to your clients and prospects. Here’s how.
Become a “Tax Hero”
You can become a Tax Hero to your current and potential real estate clients. We’re talking about a hero status so big that your clients think you should start wearing a cape.
And, you don’t need to become a tax professional to be a Tax Hero. Just make your clients aware of one simple tax code that most are missing—100% Bonus Depreciation.
In the first year of ownership, this one change potentially saves a commercial building owner $40,000 – $100,000 per $1 Million of building owned or purchased. It’s like buying a building and getting up to a 10% off gift card.
To become a Tax Hero, just say this to your client or prospect:
- “100% Bonus Depreciation.
- • When you buy a building, about 20% of the building qualifies for 100% Depreciation.
- • It’s worth about $60K per Million in the first year you own the building.
- • I have a specialist that you can talk to. I’ll send you their number.”
That’s it. Congratulations on achieving Tax Hero Status! YOU EARNED IT!
How Does it All Work?
Now, overachievers want to know how and why this new tax code works. I’ll try and keep it simple.
- In the new tax code, Congress wanted to encourage business owners to buy more stuff to stimulate the economy.
- So on purchased items that have to be capitalized and depreciated over a period of 20 years or less, Congress said you can have all of your depreciation deductions in the first year.
- It is like everything went on sale.
Every tax professional knows how to take these deductions on items like equipment, computers, furniture and fixtures but not all know how to get 20% of the building to qualify for this same bonus depreciation in the first year. This is where you might want to recommend a cost segregation specialist.
What is cost segregation?
Instead of selecting the old straight-line depreciation method that views the building as one whole piece and depreciates the building over 39 years, the owner can select a depreciation method that groups or “segregates” the values of the parts and pieces of the building into categories that depreciate on a 5-, 7-, 15- and 39-year basis. About 20% of the building fits into the 5-, 7-, and 15-year categories. And remember Congress said that anything purchased that has a depreciable life of 20 years or less can be 100% Depreciated in the first year. That averages $40,000-100,000 of cash flow in the first year for every $1M of building.
Cost Segregation Services, Inc. —CSSI can perform an engineering-based study of the building by identifying and valuing all the parts and pieces that qualify, photo document the building, and to supply the numbers that allows the tax professional to file for these deductions, AND we can provide a free, no-obligation estimate on any building in 48 hours.
For buildings that you might have for sale, or buildings that a prospect might be considering, you can contact me and I will get you that estimate on the building to present to your potential client.
I think that long shiny cape would look good on you. Contact me today to learn more about how I can help make you a HERO.
Contact Me Directly
Call me directly at 770-224-8504 or 888-780-1333
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Email me at David.wiener@cashflowstrategies.us
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