What is bonus depreciation?
Bonus depreciation is additional depreciation for short life property you take in the first year. That means everything that moves into the 5, 7, and 15-year buckets is immediately expensed in the first year. It varies property-to-property, but a good typical range is 20% - 30% of a property is short life.
What is Bobby's job at PricewaterhouseCoopers?
Bobby spent nearly the first decade of his career at PricewaterhouseCoopers becoming a subject matter expert in tax credits and cost recovery solutions. Bobby’s expertise all fall under the umbrella of fixed assets, specifically related to tax incentives tools for developers and owners of properties. Cost Segregation is the most common tax incentive project Bobby has done through the years, having performed numerous cost segregation and depreciation studies ranging in scale from professional sports stadiums (e.g., Mercedes-Benz Stadium, Bank of America Stadium, etc.) to bank branches, restaurants, and distribution centers.
How much tax do you owe if you make $300,000?
If you made $300,000 of taxable income in a given year, we can see the difference a cost segregation study will make on your tax liability. Without a cost segregation study, you have $280,300 ($300,000 - $19,700) of taxable income. Assuming a 32% tax rate, you owe the IRS $89,696 for the year.
What are the benefits of cost segregation?
Benefits of a Cost Segregation. The main goal of all cost segregation studies is to accelerate the depreciation expense associated with your property. If that is the goal, let’s take a moment to discuss the issue. Spending money to purchase or build an income-producing property does not lower your taxable income.
How long does it take to depreciate a property?
Without a cost segregation on residential real estate, the entire property is placed into one depreciable class life which takes 27.5 years to depreciate. So, if you spent $1,000,000 on an investment property, you only get a $19,700 depreciation expense in the first year.
Do you need a psychologist to invest?
The secrets to investing are all in your head... Also know as behavioral finance. You don't need to be a psychologist. Daniel Crosby distills hundreds of behavioral bias down to 4 main categories and makes is simple to understand so you too can be a successful investor.
Who is Rich Checkan?
Rich Checkan: As the President and COO of ASI, Rich Checkan has been an integral part of ASI's maturation to a full-service tangible asset provider to include precious metals, and rare US, world, and ancient coins. Mr. Checkan oversees the operations, administrative, sales, and marketing departments, and serves as ASI's compliance officer. He is a regular contributor to Escape Artist Insiders magazine and ASI's monthly newsletter, Information Line. Mr. Checkan speaks yearly at numerous conferences and seminars worldwide, has been tapped for his expertise on industry vlogs and podcasts, and had been quoted in myriad financial newsletters and the NY Times.
