Unlock the full potential of tax benefits for commercial real estate (CRE) with this definitive guide from “Commercially Speaking.” In a special episode crafted by Timmy Barron, we’ve merged two pivotal tax discussions to create a comprehensive and easy-to-follow roadmap for CRE professionals and investors. This episode amalgamates insights from an initial breakdown provided by Bo Barron in February 2023, where he explains complex tax benefits to Timmy, then a CRE novice, with a deeper dive by CPA Kevin Bassett in February 2024, offering updates and potential changes in tax law.

What You’ll Discover:

• Tax Breaks Uncovered: Learn about the lesser-known yet highly lucrative tax advantages available to CRE investors and how to leverage them effectively.
• Step-by-Step Guide: Whether you’re a seasoned professional or new to CRE investing, this episode walks you through the tax benefits with clarity and precision, ensuring you can apply this knowledge practically.
• Latest Law Updates: Stay informed with the most recent updates in tax legislation affecting CRE, as explained by expert CPA Kevin Bassett, and understand how these changes could impact your investment strategies.
• Expert Strategies: Gain insights into strategic tax planning tailored for CRE investments, helping you to maximize returns while minimizing liabilities.

This episode is an invaluable resource for anyone involved in CRE looking to deepen their understanding of tax implications and optimize their financial outcomes. Bo and Timmy, along with expert insights from Kevin Bassett, ensure that you have the information needed to navigate the complexities of CRE taxes confidently.

Tune into this ultimate tax guide on “Commercially Speaking” and transform your approach to CRE investments with expert knowledge and strategic advice.

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CONNECT WITH KEVIN BASSETT, HIS NEWSLETTER AND LEARN MORE: https://www.bassettcpas.com/

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⏰ Time Code ⏰

00:00 – Start
01:36 – 4 Reasons To Own Real Estate
01:51 – 1. Appreciation
02:04 – 2. Depreciation
04:00 – 3. Cash Flow
04:18 – 4. Equity
05:00 – Proper Structures For CRE Incomes
06:32 – The Holy Grail Of Tax Strategies – Cost Segregation Study
08:35 – Cost Seg Explanation From A CPA
09:59 – The Secret of Bonus Depreciation
12:33 – Real World Example of the Cost Seg Strategy
14:22 – Bonus Depreciation Sunset
14:53 – Tax Law Update
16:03 – Passive vs Active Income
16:37 – Depreciation Benefit of Real Estate Professionals
17:06 – Tax Rules For Real Estate Professionals
18:19 – It’s Not Too Late
19:32 – Depreciate The Bank’s Dollars!
20:18 – 1031 Tax Deferred Exchange
22:59 – Cost Seg vs 1031 Exchange
24:05 – Benefits to Planning Ahead
24:23 – The Alternative Strategy to 1031
25:52 – Roll Over Depreciation
26:39 – Investors Can Use Their Bonus Depreciation Indefinitely!
28:26 – 20% Tax Rate Over The Life Of The Project
28:51 – Section 199A
30:15 – When To Do a Cost Seg Study Per A CPA
31:23 – 100% Chance They Will Ask For This In An IRS Audit

📒Show Notes📒

🎉SIGNUP FOR THE WEEKLY NEWSLETTER FOR CURATED CONTENT ON COMMERCIAL REAL ESTATE TRENDS, THRIVING IN BUSINESS AND MORE: https://subscribe.wgbarron.com/

🎉Join the party, stay informed, access bonus content, the blog and more: tinyurl.com/CRE-Podcast-sign-up

Subscribe and listen to Commercially Speaking Here:

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📲 Connect with us:

Subscribe to our Youtube: https://www.youtube.com/@commerciallyspeaking 

Follow us on Twitter: @comspeakpod & @bobarronccim 

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Bo is the owner and operator of Barron Commercial Group in Owensboro, KY servicing the Western KY and surrounding markets.

For all CRE inquiries, visit https://www.barroncommercial.com

Timmy is an actor, comedian, writer and host. You can follow him pretty much everywhere @timmyhartbarron