How the Wealthy Use Depreciation to Reduce Taxes

#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.

[@privateequityguy]

*Every family has a legend who breaks all odds, I believe that is you reading this*

[@TranslatedAssumption]

God I hope so!

[@casasfam9848]

Thats all i needed

[@Presidentkarani]

thanks for confirming

[@dyllonolmstead8320]

You truly share knowledge that's not readily available and absolutely priceless.

[@djwashx]

Wasnt expecting him to offer someone a opportunity to join him live Thats TRUE CHARACTER thanks for that and it wasnt even me!!!!!!!!!!!!!!!

[@whitneybowling5710]

Good stuff! Just a tip for your followers here….The cost segregation study you mentioned isn’t really for properties under $1M. It costs $10k just to pay the cost seg engineer. For big deals like Grant is talking about it’s a GAME CHANGER.

[@masoodk394]

This is amazing, I am taking notes and realizing I don't know any of this. Thank you GC and your team. Keep up the great work, more people need to be owners.

[@Josh-lh9bf]

Love all your content and life lessons can’t wait to meet you, and have your wisdom rub off on me!

[@BehindtheMuscle]

Appreciate you Grant!🙏🏻

[@Presidentkarani]

this my favorite channell am always here

[@anthonycastellani5155]

As a NJ cop, appreciate what you do Sir!

[@newprop9658]

I would love the opportunity to run that deal in corpus. Always great content love the energy as always thanks.

[@loretagurakuqi6950]

Great video recently started investing in real estate, but I'm interested in making short term profit but I don't think that's a yes in real estate, let say turn a $150K to $500k in 6months, I'd appreciate tips on how what stocks to buy to make this much profit.

[@loretagurakuqi6950]

@Jeffrey Harmon ✪ That sounds great and how do i connect with her ?

[@fredautomobile3827]

Yeah sure consulting with a reputable service exprt is absolutely the best thing to do.

[@loretagurakuqi6950]

@Jeffrey Harmon ✪ Thanks for the recommendation, she must be very good at what she does, her name is the first thing that pops up on the browser. She seems really solid and i have sent her a mail already hopefully she replies soon enough.

[@benjamingrant6830]

This is a shocker seeing melisa pamela perez is being mentioned here. I always had mixed feelings about hiring a lnvestment advisor. For the record, I started working with melisa in 2019, and she manages about 70% of my lnvestments, while I manage the other 30%. My philosophy is that I care more about my own money than anyone else, but she made me accept that they have wealth of information on current conditions and future trends

[@warrenscott4982]

Please how can I reach her easily, I think I should try this woman I've heard so much good news about her can anyone help with the digit line?

[@highridgesellers1811]

First part on depreciation was great and spot on? Had to bail after too many people calling in not understanding this is for muli-unit 16+ residential buildings. Enough with the flip and letting the tax man take you out. anyways. thanks GC

[@yisraelhannah866]

Just started watching 55 years young 18000 net two driving schools NO BRAINER BUYING MULTIFAMILY THX GRANT

[@leohoracio821]

More insight on ☝️☝️ BTC📊 REAL ESTATE 🏡 INVESTMENT!✅

[@storagehunterxchris8899]

i'm from corpus christi! excellent location, i pass by those apartments all the time

[@TexasNation897]

Such lovely and motivating comments in here 😭 I feel abundant just being here. I’m relentlessly pursuing my goal of breaking the chain of poverty in my family and I’m SO CLOSE I can TASTE IT 🙏🙏🙏🇺🇸

[@livingwaterlandscaping9324]

GC is real! I'm from Beaumont, TX.

[@TheBlueskyson]

Hi team. Link to the 3 hour training please? I cannot see it anywhere. ty 4 gr8 vid G.

[@siddharthapaul2162]

Hey the great Cardone! I am on my way to make millions...and I would like to meet you in person in near future. I am from INDIA . 🔥Wish you good health and your family ❤️ you are an inspiration

[@ShivanMahadeo]

Need to pay attention to this one

[@paultexasusa1366]

Yes!

[@nicholasvaughey7197]

You are right but even in the tax code right off for equipment is limited.

[@jackkleinke9232]

Anybody have the link to the classes he mentions at the end?

[@curtisbrandsit]

How about raw land? I imaging there has to be a structure on said land to depreciate it.

[@Tobystoysneca]

Is there any worthwhile videos on property depreciation for hmrc U.K. ? We need a grant video for the U.K. 😊

[@manfredpurkarthofer7862]

Great Video Grant :))

[@leohoracio821]

More insight on ☝️☝️ BTC📊 REAL ESTATE 🏡 INVESTMENT!✅

[@nightstalker1216]

I’ll take the flight for a 25K tix. Well done. Great American.

[@viracitycorp2577]

so when do you pay that depreciation back? on sale?

[@jamiepultrum543]

Grant! I love u!

[@ronnysharma5083]

@GrantCardone There isn't any link to the free class....where is it?

[@bobsides59]

Alright Johnny where the training link bro? Hellz yeah #Grant Cardone I'll go to Corpus and run that show! Unless you like the DFW Market better.

[@srishupadhyay1924]

Thank you grant

[@admin....8634]

Consultation&Advice🤝💬

[@leohoracio821]

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[@marcoi7035]

Uncle G !! whos got my money !!

[@Music_Chills]

What is this divide by 0.05....What is this value....Kindly reply

[@kyleundesser2704]

Can someone help me understand the 17:18 mark a little better "you cannot write off $167k unless you're a professional real estate investor". Assuming most here do not qualify as that, does this mean that if I ever have income from portfolio investments that i sell or earn dividends on, ie stocks, crypto, etc. those gains would be negated by the $167k? If I made annual portfolio income of $17k for the next ten years, this would not get taxed? It would be offset by the $167k worth of depreciation that does not expire. Thanks!

[@nbates9893]

I just started the video but I know that you need to show the powers that be that you devote at least 750 hours a year to real estate business to be considered a real estate professional and use the tax benefits.

[@TheBlueskyson]

@@nbates9893 i think that includes showing real estate income earned? ty

[@premiertaxconsultingservic4769]

Trump committ3d clear fraud and not what this guy mentioned.

[@jamiepultrum543]

And Elena!

[@davidgaribay954]

10 4 Boss

[@susanjenkins2233]

One questions, if you don't take advantage of the write off which will reduce your income thus reducing your ability to get a loan if your reduced income is zero. Explain the right way to handle this.

[@leohoracio821]

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[@noway9426]

You do not need an income if you have net worth to get a loan.

[@user-cq1yh4qq6q]

Great. No Spam.

[@stephanieriley5243]

Tractor Trailers Trucks? Heavy Equipment?

[@brandonfuller7796]

I did the $1000 investment however I got charged three times. I’ve been trying to contact somebody and no one will return my emails or phone calls. Can I please get help?

[@Sowboi1985]

So what happens when you have this insanely huge bill that is due after the years and years of depreciation?

[@thomasfamilyentertainment9720]

what if they change the IRS code? What if politicians make it illegal to do it?

[@TEXLIFE]

10:23 can someone Explain how is he proposing rent from a rental property is not income but rather return of capital?

[@user-ik6xw4xu9m]

💯💯

[@mdfcuhv2949]

Depakbhowmlk

[@mdfcuhv2949]

Depakbhowmlk

[@HazyJay]

If you need to add 9 partners for a purchase, and split the final income 10 ways, you're back at square one. What's the utility of buying a 100 unit building with 9 partners over a 10 unit building alone? You'd likely be able to find more 10 unit buildings and purchase them faster than looking for these massive deals.

[@jasontindol8828]

Kiyosaki and Cardone changed my family tree.

[@leohoracio821]

More insight on ☝️☝️ BTC📊 REAL ESTATE 🏡 INVESTMENT!✅

[@kennethporst4359]

WOOOOW this is GreAt...get me milli dollars

[@j2gaming877]

How exactly do you claim to have a 1mil$ depreciation

[@Clothestrap]

I'am a throw a TAX CONFERENCE by 2027 at the Dickie's Arena in Ft Worth Texas #goals

[@reneolivierrazafindratompo2952]

can somebody explain to me where does that '0.05' in his math come from?🤯

[@koollyb]

How do i get on live

[@BIMCLimited]

Grant… how is return on investment (property) not taxable man…? 🤯

[@ronb5341]

Where is the link to sign up for the free training?

[@jimmyb4535]

Good question ☝🏽

[@jimmyb4535]

Please send us free training link Grant mentioned

[@davidlampley7714]

Where is link to free training?

[@jimmyb4535]

Good question ☝🏽

[@SPDAli1]

26:00

[@davidbates2348]

Question Uncle G - you’re talking about bringing in 9 partners to buy a bigger property (~58 units) to make 1m+ on the deal. But if you divide it by the 10 people it’s the same or less return. Why would you do that deal with 9 partners (who will probably complicate things and whine and bitch) when you can do it yourself for the same return on a smaller scale? Obviously more units is better for sure when you can do it, but unless you aren’t paying equal equity in the deal to the partners why would that other hypothetical deal be better?

[@davidbates2348]

And also back the blue… hell yeah uncle G! Love the attitude!

[@leohoracio821]

More insight on ☝️☝️ BTC📊 REAL ESTATE 🏡 INVESTMENT!✅

[@sureshg2885]

Rakice ok

[@aortizandrew1]

Dayumm... He hung up the call on a guy 😅

[@wormguy3]

Grant is 100% correct in his knowledge of tax regulations for corporations and 100% wrong in what he's saying about individuals. Remember folks Grant is a Corporation.

[@nancydickson7699]

*EVERY FAMILY HAS SOMEONE WHO BREAKS THE CHAIN OF POVERTY,I AM,I PRAY YOU BE THE ONE TOO,ALL THANKS TO MRS BLOSSOM JEFFERSON SHE CHANGED MY FINANCIAL LIFE FOR GOOD*

[@jeffmatt7086]

Starting early is the best way of getting ahead to build wealth,investing remains the priority. Forex trading has plenty of opportunities to earn a decent payout,with the right skills and proper understanding of how the market works

[@James-km7ut]

How do I get to her?

[@rosanicole5643]

What a striking coincidence,Expert Mrs blossom Jefferson changed my financial life tremendously I was able to pay off my loan $50000 with her methods, her method works like magic

[@rosanicole5643]

@@James-km7ut seeking for her contact details👇

[@rosanicole5643]

➕①⑨②⑨ ④①⑨ ①③①⑥

[@WoodUCreate]

It's really just a tax deferment to a future time when you'll sell your property and have to pay your deferment back or transfer it to a new property via a 1031 exchange. It's not free cash unless you die and your heirs get it. The one other benefit is reducing your tax responsibilities today and paying it back in future cheaper inflated dollars.

[@leohoracio821]

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[@TEXLIFE]

Yup you are right. That's exactly why this is a good deal. If you look at ben mallah he hasn't paid depreciation recapture since 30 years .

[@BatterCallAUM]

Why are you dividing the rent by 0.05

[@leohoracio821]

More insight on ☝️☝️ BTC📊 REAL ESTATE 🏡 INVESTMENT!✅

[@jarvinator94]

Cap rate

[@marcosromero7952]

So then I could not write it off against my wages from work? I make 120k per year and need to find a way to stop giving the government money

[@maureenwilliams1]

Deprecation Recapture is horrible. You get creamed.They get you wherever they can!

[@bennytherollinstoner1932]

Grant Cardone:I'm going to make you all rich yeah ill believe that when my car can fly.

[@admin....8634]

Consultation&Advice🤝💬

[@leohoracio821]

Text, More insight ☝️☝️on BTC📊REAL ESTATE 🏡 INVESTMENT!💯

[@CS2_CS-GO]

I'm so confused 😂🤣

[@dadggsCA]

33:30 💀

[@collinmiller8866]

Your 4 billion in real estate is about to be 1.8 billion in the next few years. And it’s all built on debt so you’re basically screwed.

[@lekeabiodun3252]

Multifamily valuations are based on rental income (cap rate), not market comps. Rents generally trend upwards. He does not need to sell if they have secured long term debt at low interest rates. He will be fine. Don't be a hater

[@premiertaxconsultingservic4769]

First 5 minutes I heard at least two wrong things. I am an accountant.

[@dadggsCA]

He went to college for accounting too so…..

[@bestreviewer2038]

I depreciate the equipment I use to mine crypto and then I make 12% interest on that money. Obviously you don't know crypto but you talk about it more than real estate lol

[@Rodriguez88m]

I have 30k 💵. My wife and I are saving for $250,000 to put down on a $1,000,000 apartment. Only the brainwashed think that’s impossible. We rent a $900 1 bedroom apartment. No debt. LETS GOOOO.

[@undergroundterpgoddess]

I will be the one who breaks the cycle of generational poverty in my family. I will be playing transcontinental monopoly baby

[@mdfcuhv2949]

DEPAKBhOWMIK

[@definitemajorpurpose]

Uncle G, is a faker

[@gandr.e.5136]

annnnnd broke

[@definitemajorpurpose]

Kiss my Bleep Buddy!!! You don’t know what our fake Uncle G did to me!!!! Trust yourself, you know what to do.

[@definitemajorpurpose]

ONLY UNCLE G CAN YELL AND CURSE??????!!!!!!!!!!

[@definitemajorpurpose]

I Will stop, when I get an apology, directly, from my Fing Uncle G!!!!!!!🔥🔥🔥🔥🔥🔥

[@erickaleigh1650]

@@definitemajorpurpose what did he do ?

[@definitemajorpurpose]

Freak

[@gandr.e.5136]

broke

[@definitemajorpurpose]

Liar

[@gandr.e.5136]

broke

[@collinmiller8866]

Lol the legal depreciation rate is like 3.6% so you’d need a million dollar loan to write off 36k in taxes. This is legit hilarious he’s encouraging going into extreme debt at most likely absurd interest rates to write off almost nothing… you’d need to be 30 million in debt to write off 1 million in income… if I am missing something, please inform me, but I’m 99.999999% sure he has no idea what he’s talking about.

[@kawze]

You’re telling that grant Cardone and Donald trump strategy isn’t something he knows

[@kawze]

You’re naive

[@definitemajorpurpose]

Show boater

[@gandr.e.5136]

broke

[@mjlives5428]

YEAH GC NEEDS HIS HATERS TY DUDE THE MORE HATE THE BETTER HE DOES THIS IS AWESOME.TY FOR TAKING TIME OUT OF YOUR IMPORTANT DAY TO COME HERE TO HATE OVER AND OVER...ALOT ANGER YOU GOT EH DUDE?HOW MANY MILLION YOU GIVE TO CHARITY LAST YEAR ...HE DID 33 MILLY..AND YOU????WHATS THAT CANT HEAR YOU???HOW MUCH?????HAHAHAHA

[@definitemajorpurpose]

Our Fake Uncle G ripped me off