Cost Segregation Techniques You Should Apply Today to Reduce Taxes

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Clint Coons Esq. | Real Estate Asset Protection

Clint Coons Esq. | Real Estate Asset Protection

Күн бұрын

Пікірлер: 105
@ClintCoons
@ClintCoons 9 ай бұрын
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@gameoflife7235
@gameoflife7235 3 жыл бұрын
I've been watching your videos for years now and finally took the plunge and bought 3 SFRs this year. Being able to use so many of your tips is great! Between cost segs, tax gain harvesting, investing strategies and more I'll pay the lowest taxes I've ever paid while earning the most income. My only regret is not starting at the bottom of the housing crash.
@ClintCoons
@ClintCoons 3 жыл бұрын
That is great. Best of success.
@coumadin75
@coumadin75 2 жыл бұрын
Don't forget about PAD I wish I knew how to do that
@jhuilar
@jhuilar Жыл бұрын
@gameoflife how are things going a year later?
@Kalease54
@Kalease54 Жыл бұрын
Thanks for the video. Depreciation recapture wasn’t discussed and is an important topic to consider with cost segs as well as 1031 exchange impacts.
@ClintCoons
@ClintCoons Жыл бұрын
Great point!
@e1n17g13l1i14sh
@e1n17g13l1i14sh 3 жыл бұрын
I’ve spoken with Erik, he’s very patient and takes the time to answer questions
@ClintCoons
@ClintCoons 3 жыл бұрын
Yah he is a great guy.
@tommysors1476
@tommysors1476 2 жыл бұрын
Clint Coons thank you for this video. Great info as always!!!!
@ClintCoons
@ClintCoons 2 жыл бұрын
My pleasure!
@cindyhewett6966
@cindyhewett6966 2 жыл бұрын
I'm geeking out on this stuff! Love it! Lots of great ideas!
@ClintCoons
@ClintCoons 2 жыл бұрын
Great
@carlosmelendeztaxhax
@carlosmelendeztaxhax Жыл бұрын
@@ClintCoons You should fix this video. 2 major problems. I forgot to mention at 12:29 carryover loss isn't offsetting current year gains because of the recapture. I'm disappointed attorneys would be spitting out lies. Carryover loss may offset recapture but not capital gains. Forget that. Also, you guys have PAD wrong. AT 16:38 you talk about 3 months, you can't depreciate assets placed in service and disposed of in same year. This is bad. Clint, fix this
@NoOne-fe8qt
@NoOne-fe8qt 2 жыл бұрын
Clint - loving your videos and the generous sharing. Wish more success to you, your partners and Anderson. You guys deserve it! Q: Am over the MAGI limit from W2 job. Bought 3 rentals 2021. Doing an Amendment for 2021 taxes now to include cost segregation (cleaner approach. Start correctly. Not difficult either). There will be no cash flow benefit to me for years whether I take Bonus depreciation 100% of the 5 year segregated items in 2021 OR spread it over 5 years. However, if I need to change out a carpet or appliance before the end of the 5 year period, and would like to depreciate the new item in say 2023, which is option is better now for the 2021 Amendment: a. Take 100% depreciation today and let it Carry Forward (get it off the books). Simple strategy, maximize benefit although delayed. Any negatives? b Continue partial Depreciation for 5 years and deal with the swap some other way ( Partial Disposition). Seems more complex and work! Unforeseen IRS obstacles? I plan to keep the properties and hopefully pass it down as inheritance. So depreciation recapture is not a factor.
@carlosmelendeztaxhax
@carlosmelendeztaxhax Жыл бұрын
MAGI isn't relevant here. Only way you are getting paper losses with any depreciation is if rentals are run as business or if you are REPS. So, Cost Seg won't help you, unless the rentals are business income paying self employment taxes and claimed on Schedule C and NOT Schedule E
@nyacoustics8373
@nyacoustics8373 Жыл бұрын
What fif you have a rental property that has three apartments in the farm house.then has three old barn buildings and workshops on the 25 acres of land. Can the house with the rentals and the old barn structures be cost seg and used for bonus depreciation?
@buzybill
@buzybill Жыл бұрын
I've done cost segregation with Cost Segregation Authority, LLC. They may be experts in cost segregation studies, but did you know that they don't know how to calculate the cost basis? They just use CONTRACTED PURCHASE PRICE! Not capitalizing legal, title insurance, and recording fee etc. I would verify if they got the right cost basis, if not you'll be the one paying the penalties. I had them change it, but haven't heard from them for couple weeks.
@eeyespytran4988
@eeyespytran4988 Жыл бұрын
How would we verify if we aren’t familiar with how cost segs work and they are the “expert”
@buzybill
@buzybill Жыл бұрын
@@eeyespytran4988 Ask an accountant if the cost basis is capitalized correctly along with HUD statement and their cost study. Or just ask the accountant, "what is my cost basis?" by showing the HUD statement. It should include contract price, legal, title insurance, record fee, etc.
@eeyespytran4988
@eeyespytran4988 Жыл бұрын
@@buzybill Thanks. I assume you’re still waiting for them to remedy your analysis? Please keep us updated.
@buzybill
@buzybill Жыл бұрын
@@eeyespytran4988 Yes. Sure.
@nickbrunette8292
@nickbrunette8292 2 жыл бұрын
Amazing content thank you so much for clarifying things in this video.
@ClintCoons
@ClintCoons 2 жыл бұрын
Glad you enjoyed it!
@jhuilar
@jhuilar Жыл бұрын
@Clint do you have any recommendations of which CPA firms to use?
@ClintCoons
@ClintCoons Жыл бұрын
Anderson. :)
@averybeasley7347
@averybeasley7347 Жыл бұрын
Are the "retired" assets expensed or do they become a capital loss?
@ClintCoons
@ClintCoons Жыл бұрын
Are you referring to PAD? If so it is a deduction.
@luciodeluca3257
@luciodeluca3257 2 жыл бұрын
Hi Clint. Your videos are so awesome! Thank you for posting them! I've got a question I hope you can answer. My scenario..... I bought a vacation condo 18 yrs ago which I rent out most of the year (min 30 day stay). I've been depreciating it over 27.5 yrs and have been able to take advantage of the deductions & depreciation. However, over the last couple of years my salary has way surpassed $150k and as you know the tax code prohibits me now from taking most of my deductions/depreciations. I am not a real estate professional, nor do I want to start doing short-term rentals. Is it worth doing a cost-segregation analysis on the property now? and if so, will I be able to take immediate advantage of the tax savings? I would love to recoup some of the $35k in annual taxes they take out of my paycheck. Thank you in advance. You opinion is so appreciated. Thanks again
@ClintCoons
@ClintCoons 2 жыл бұрын
If you bought it before October 1, 2017, probably not. If you bought it after you will need to meet some tests to qualify. 1. your average rental period should be 7 days or less and 2. you must spend 100 hours self managing your property and more time than anyone else.
@carlosmelendeztaxhax
@carlosmelendeztaxhax Жыл бұрын
No. Only if you Switch them to short term rentals
@nechamia
@nechamia Жыл бұрын
can you describe if cost seg can be used on international asset
@ClintCoons
@ClintCoons Жыл бұрын
Bonus depreciation is not available to foreign real estate.
@nechamia
@nechamia Жыл бұрын
@@ClintCoons Does that apply for short term rental properties as well? Thanks!
@ClintCoons
@ClintCoons Жыл бұрын
@@nechamia You can use Bonus on STR if it is located in the US
@JimCandy-llamas
@JimCandy-llamas 6 ай бұрын
How do I find show notes with contact info and other links to related content?
@ClintCoons
@ClintCoons 6 ай бұрын
Learn more about Erik and Cost Segregation. 👇 andersonadvisors.com/csa/ About Cost Seg Authority 👇 costsegauthority.com/about-us/
@cindianderson9443
@cindianderson9443 Жыл бұрын
If you have a loss after applying all the catch-up depreciation from a cost segregation, can that be applied to excess capital gain on sale of a primary residence, or does it carry forward to passive income in the following year?
@ClintCoons
@ClintCoons Жыл бұрын
Carries forward
@cindianderson9443
@cindianderson9443 Жыл бұрын
@@ClintCoons Bummer but that's what I suspected. Thanks
@jaybhattacharjee9107
@jaybhattacharjee9107 Жыл бұрын
I just converted my primary residence to rental property in 2023. Can I use cost seg? Can I get bonus dep?
@ClintCoons
@ClintCoons Жыл бұрын
Yes but you cant use bonus depreciation.
@stevenw373
@stevenw373 3 жыл бұрын
Amazing show guys! Thank you!
@ClintCoons
@ClintCoons 3 жыл бұрын
You bet!
@natalienaito2995
@natalienaito2995 3 жыл бұрын
This was a great video. Thanks Clint! I'm looking to invest in a real estate syndication this year and the close date is sometime in December. A cost segregation analysis will be performed. Can I delay the depreciation benefit when I do my taxes in 2023 for the 2022 tax year? I don't have any sort of real estate investments currently and my understanding of how to benefit from depreciation is that the amount can be deducted only from the real estate income amount and not towards my regular W2 income (since I am not a real estate professional).
@ClintCoons
@ClintCoons 3 жыл бұрын
Yes you can. You just need to acquire the property before the end of 2022 to get the full bonus depreciation.
@chiphoward8565
@chiphoward8565 2 жыл бұрын
If I bought a STR property at the end of the year and put it into service this year and did a cost segregation this year as well, how many days do I need to rent the property this year to be able to take the full 100% bonus depreciation deduction?
@ClintCoons
@ClintCoons 2 жыл бұрын
No minimum number but your average rental period must be 7 days or less.
@austinruckstuhl4928
@austinruckstuhl4928 2 жыл бұрын
Yall refer to the ability to apply these losses if you are a real estate professional (Im very clear on that) or it’s a STR investment property. Do you have another video or resource on that STR exemption that would allow me to deduct passive losses from active gains?
@ClintCoons
@ClintCoons 2 жыл бұрын
Yes - kzbin.info/www/bejne/oWiXo4J4r7uMgpY
@z5m2
@z5m2 3 жыл бұрын
Does the age of the building matter? If I buy an 50 year old property, with 15 year old appliances and carpet, can I still provide an estimated value for those items (cost seg) and depreciate those assets faster? The estimated value of those old appliances, can I use market values of new appliances?
@ClintCoons
@ClintCoons 3 жыл бұрын
The age does not matter only how long you have owned the property.
@z5m2
@z5m2 3 жыл бұрын
@Clint Coons: Real Estate Asset Protection interesting! Thx! So if buy a property with 16 year old appliances (that may have already been fully depreciated by the former owner), I can apply a market value (cost basis) to those same appliances still and depreciate them over 5 years?
@ClintCoons
@ClintCoons 3 жыл бұрын
@@z5m2 Yes
@virginiayanos2234
@virginiayanos2234 2 жыл бұрын
How do I get in touch with Eric Oliver?
@ClintCoons
@ClintCoons 2 жыл бұрын
andersonadvisors.com/csa/
@sueforwith
@sueforwith 2 жыл бұрын
On a Short term rental, can I cost segregate furniture?
@ClintCoons
@ClintCoons 2 жыл бұрын
Typically you would expense out the furniture under Sec 179 and bonus depreciation and not cost seg.
@coumadin75
@coumadin75 2 жыл бұрын
If I move out of my home into a rental property then convert my original home to a rental and do cost seg and bonus depreciation, can I move back into my own house as primary residence? What happens to captured depreciation as the house hasn't been sold ?
@ClintCoons
@ClintCoons 2 жыл бұрын
It would depend on when you purchased your home and how long you rented out the property.
@coumadin75
@coumadin75 2 жыл бұрын
@@ClintCoons I have a consultation scheduled with your team. I hope that I can talk to you as well during that time
@MotivLifter
@MotivLifter Жыл бұрын
How do I get your company to look at my properties?
@ClintCoons
@ClintCoons Жыл бұрын
andersonadvisors.com/csa/
@cmargo10
@cmargo10 2 ай бұрын
If my agi income is over $150k, do I get a loss carry forward for the next year on active income or just passive?
@ClintCoons
@ClintCoons 2 ай бұрын
Passive losses are carried forward.
@cmargo10
@cmargo10 2 ай бұрын
@@ClintCoons so active losses aren’t carried forward?
@ClintCoons
@ClintCoons 2 ай бұрын
@@cmargo10 Yes they are as well.
@taddrienstra7247
@taddrienstra7247 2 жыл бұрын
Who does cost segs? Never heard of this before. Seems very specific
@ClintCoons
@ClintCoons 2 жыл бұрын
Check out the show notes.
@rcruz401
@rcruz401 2 жыл бұрын
Can a cost seg ever give you a reimbursement or money back when you file your taxes? Or is it only continuously carried forward if you don't have sufficient income to offset for that year?
@ClintCoons
@ClintCoons 2 жыл бұрын
Carried forward
@AdrianButler86
@AdrianButler86 2 жыл бұрын
Would a person do this study before or after a rehab or b4 n after?
@ClintCoons
@ClintCoons 2 жыл бұрын
Before and after
@AdrianButler86
@AdrianButler86 2 жыл бұрын
@@ClintCoons that's what I figured Clint. But not with a true fix n flip right? True, meaning where u buy a sfh that's uninhabitable and vacant and u plan to sell it and not keep as a buy n hold prop. But cost seg can be done after repairs if u buy a vacant n uninhabitable prop as long as it's done, in service and u plan to keep as a rental, right?
@ClintCoons
@ClintCoons 2 жыл бұрын
@@AdrianButler86 Yes you must place the property into service if you want to depreciate it.
@yanpingye3518
@yanpingye3518 3 жыл бұрын
So does this accelerated depreciation apply to someone’s primary residence? Or just rental property?
@ClintCoons
@ClintCoons 3 жыл бұрын
Just investment property
@vltod9167
@vltod9167 3 жыл бұрын
Is it possible to live in my rental property and pay rent to my llc and use the advantage of owning a rental?
@crazycrayfish7610
@crazycrayfish7610 2 жыл бұрын
@@vltod9167 it doesn't make sense. You are creating taxable income for the LLC for nothing.
@bryannn1998
@bryannn1998 3 жыл бұрын
Been watching your videos like crazy! Here’s my situation. I’m 23yo in college getting my Finance degree. I don’t work and still live at home but have amassed $150k in the stock market in about 4 years by diligent investing and basically devoting my life to it. Of those $150k, $120k are unrealized capital gains. I want to pivot and begin to buy real estate. I’ve been doing my homework and here in Miami the Best return on investment capital is 1/1 bed and bath and they are going for $135-$150k. I want to leverage my money as much as possible Ofcourse and want to buy several properties. Do you recommend I transfer my stock into an LLC, report taxes on the LLC once I realize the gains and purchase real estate under the LLC? Or is there a better way to do it. I’m fighting an uphill battle with no work history and no tax history but I have some funds and I want to make the best decisions! Hope to hear from you soon!
@ClintCoons
@ClintCoons 3 жыл бұрын
You would not receive a benefit from selling your stock in an LLC versus you own name. If you think the market will continue to climb you might consider borrowing against your portfolio (this is called margin) and using the funds to invest in real estate. This way you do not have to sell any of your positions and pay tax.
@bryannn1998
@bryannn1998 3 жыл бұрын
@@ClintCoons Nice! Thank you! Do you think I can purchase real estate with $150k and no tax history? I’m just starting to begin getting ready to sell some shares. I just have no idea how I’m going to begin doing real estate 🏡
@ClintCoons
@ClintCoons 3 жыл бұрын
@@bryannn1998 If you are looking to borrow it will be difficult. You should look for asset based lenders.
@bryannn1998
@bryannn1998 3 жыл бұрын
@@patboyle7174 yes! But what I’m currently holding is incredibly risky! So I would like to do this with a more stable well diversified portfolio
@holylabs
@holylabs 2 жыл бұрын
@@bryannn1998 did you end up pulling your money out in time?
@carlosmelendeztaxhax
@carlosmelendeztaxhax Жыл бұрын
This is all fine and dandy but remember the more you cost seg and retire line items with pad, the more you lower your basis and that recapture is gonna be crazy if you sell or do a 1031. TCJA killed the deferral of taxes on any property that isn't real property and cost seg creates more "other property" So, be careful
@carlosmelendeztaxhax
@carlosmelendeztaxhax Жыл бұрын
I forgot to mention at 12:29 carryover loss isn't offsetting current year gains because of the recapture. I'm disappointed attorneys would be spitting out lies. Carryover loss may offset recapture but not capital gains. Forget that. Also, you guys have PAD wrong. AT 16:38 you talk about 3 months, you can't depreciate assets placed in service and disposed of in same year. This is bad. Clint should fix this.
@ClintCoons
@ClintCoons Жыл бұрын
Carlos I am frist to admit - my partner Toby Mathis is the tax guy and I try my best. :). Regarding your comments, I believe the IRS issued final regulations in 2020 (www.federalregister.gov/documents/2020/12/02/2020-26313/statutory-limitations-on-like-kind-exchanges) addressing 5 and 7 year cost seg property. The regulations treat nearly all of it as real property for 1031 exchange purposes. At 12:29 we are referring to the Cost seg losses being used to offset gains from the sale of a different asset not the existing property. We should have clarified that you would need to be a RE professional or cost seg a STR property that you materially participate in to use the losses against your Cap gains. Alternatively, consider taking the 1245 losses from a cost seg and using them to offset the 1245 gain recapture on the sale of a different property. In this case the planner would want to categorize more of the recapture as 1245 versus 1250. (see below) You are correct that we would have 25% recapture on Sec 1250 Cost seg property versus ordinary income on Sec 1245 property. However, a planner should allocate as much of Sec 1245 to Sec 1250 on the sale to keep the tax at the lower 25%. At 16:38 we are discussing that to be eligible for a PAD the property must be placed in service before you can take advantage of cost seg/PAD. Correct, if the property is not held for investment then you are not eligible to take the deduction. Let me know what you think of the above clarifications and thank you for adding the feedback. I truly appreciate your watching and taking the time to comment.
@therealfire.
@therealfire. Жыл бұрын
@@ClintCoons Tks for your follow up. The 2020 guidelines have almost no real world application as it pertains to cost seg. The standard for like kind associated personal property is super strict and hard to implement. So, that’s a grey area with little use. But the whole 3 month rent on a purchase involves putting an asset into service and 3 months later retiring that asset from service. It can’t be done to claim any depreciation, adjustment in basis, etc. Now it can be 1 day if it’s 12/31 and then 1/1 for example. So I think that’s a clear mistake in the video. You can’t claim depreciation on any kind of business/investment property that you place in service and retire in the same tax year.
@BW-kv9wj
@BW-kv9wj 3 жыл бұрын
Can this be done on a DST property where I own a small percentage of a huge gigantic multi level office building? I own $1.3M of a $50M property with other investors in this DST? And if so, would I have to send him out there to do the study of the building?
@ClintCoons
@ClintCoons 3 жыл бұрын
Yes and it is common in your situation to perform such a study.
@BW-kv9wj
@BW-kv9wj 3 жыл бұрын
@@ClintCoons Thank you
@jameszeris5418
@jameszeris5418 2 жыл бұрын
Great video
@ClintCoons
@ClintCoons 2 жыл бұрын
Thanks for the visit
@sueforwith
@sueforwith 2 жыл бұрын
If I move out of my primary home and make it a STR, can I do a cost segregation?
@ClintCoons
@ClintCoons 2 жыл бұрын
Yes if you convert it to an investment property.
@joelmendoza6325
@joelmendoza6325 11 ай бұрын
How can I get in touch with you?
@ClintCoons
@ClintCoons 11 ай бұрын
If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession
@shannonhail5597
@shannonhail5597 Жыл бұрын
If purchased before Sept 28 2017 then you get 50% of the bonus…. So you are still eligible.
@ClintCoons
@ClintCoons Жыл бұрын
Yes and it would depend on when the property was placed in service. Property acquired before September 28, 2017, and placed in service after 2019 is not eligible.
@lisakeene1407
@lisakeene1407 Жыл бұрын
right off the bat...I LOVE TRUMP. Didn't know this existed, great to know, of course. So, the bookkeeper does the Cost Segregation?
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