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What is cost segregation, and how can it help real estate investors maximize tax savings?\n\xa0\nThis episode digs into the powerful tax strategy of cost segregation. Eric Oliver from Cost Segregation Authority joins host Taylor Loht to explain what cost segregation is, how it works, and why every real estate investor should understand and utilize this tool.\n\xa0\nThey discuss the tax advantages of cost segregation for real estate investors. Eric provides an overview of cost segregation, explaining that it allows investors to accelerate depreciation deductions by segregating building costs into shorter asset lives. They discuss bonus depreciation, how it puts cost segregation \u201con steroids,\u201d and how the percentage is reducing but still favorable for investors. Eric clarifies that cost segregation deductions are passive losses that typically can only offset passive income. Eric emphasizes the importance of working with a qualified tax strategist rather than just a preparer.\n\xa0\n[00:01-4:30] Opening Segment\nCost segregation accelerates depreciation by segregating assets into shorter tax lives\nAllows writing off deductions faster versus straight-line depreciation\nIdentifies items like flooring and appliances that can depreciate faster\n\xa0\n[4:31-9:00] The Power of Bonus Depreciation \nBonus depreciation allows taking a larger deduction upfront\nAllows immediate 100% write-off on assets under 20 years life\nPhases down over the next few years but still beneficial\n\xa0\n[9:01-15:30] Passive vs. Active Losses \nCost segregation deductions are usually passive losses\nCan only offset passive income without special status\nReal estate professionals can deduct against active income\n\xa0\n[15:31-23:00] Not All Studies Created Equal \nOnline calculators don\u2019t follow IRS guidelines\nConservative estimates leave tax savings on table\nEngineering-based studies with site visit better\n\xa0\n[23:01-31:30] Tax Strategist vs. Preparer\nTax preparers just file based on the given information\nTax strategists proactively minimize your tax liability\nMeeting at least quarterly ensures maximizing deductions\n\xa0\nQuotes:\n"Cost segregation really is just accelerated depreciation on your real estate assets." - Eric Oliver\n"Bonus depreciation puts cost segregation on steroids and creates a bigger deduction in the first year." - Eric Oliver\n\xa0\nConnect with Eric:\nWebsite: www.costsegauthority.com\n\xa0\nApply to Invest with Taylor at\xa0www.investwithtaylor.com\n\xa0\nTrack your wealth for free with Personal Capital, go to\xa0www.escapingwallstreet.com\n\xa0\nPlease leave a review and help others escape Wall Street and build wealth on Main Street!