It’s good to learn early but you gotta walk first before you can run. Best recommendation is Being financially literate first! Meaning know where every penny goes, don’t buy something if you can’t buy it 10x and build your credit. Trust, once you’re 21 credit is what will open new doors.
@@averageedpenjoyer1692 yep exactly. Honestly I don’t even know if what he said in the video was true, and I won’t bother to find since I live in another country anyways. But it did sound pretty right what he said in the video
@@olliec2603 The poster isn’t the same guy. But yeah what’s he’s talking about in US is called a 1031 and the guy in the video doesn’t sell courses he runs a company in Texas that makes skyscrapers/industrial buildings
how does it depreciate and raise in value at the same time? makes no sense. A 600k tax break means the property took a 600k loss at lest on paper. I dont understand how thats beneficial or a “tax loophole”
you essentially understate the value for tax purposes, but the actual value raises due to inflation - it makes sense but impossible to explain in 10seconds on a yt short ;d
@@patrykkordaczuk7180no that’s wrong. You aren’t understating anything, every appliance, roof, door, wood, electric system, water system, ETC, is one year closer to needing to be replaced every year you own the property. That’s depreciation. You have to pay it back once you die or once you sell the property unless you 1031 though
@@Kowdsy correct but you sell before anything like that goes wrong. You can depreciate for 27 1/2 half years but 8 to 9 years is the sweet spot for owning a property. The next guy fixes it and writes it off on his taxes and does the same exact thing. And you always 1031 exchange, you never sell an asset.
@@Kowdsy when you die your real estate should be in a trust and if you’ve raised your kids/ heirs to know better they should never sell either. I don’t see a reason to ever give the government a single penny if it can be legally avoided.
I was coming to the comments to say the same thing till I realized what he meant, he’s just repeating what he’s heard so he doesn’t fully understand what he’s saying, what he meant to say in dumbed down terms is that after the study is done the actual price he is paying for the property has depreciated so he’s paying less and thus more cash flow but still a terrible idea nobody should listen to this
PLEASE learn about this stuff before commenting. What he is saying is real and legit. I buy apartment complexes for a living and this is a VERY legitimate play.
If you depreciate it in value when u sell the property u will pay a fortune in capital gains tax smh. At least tell people that you will be paying a bag afterwards lol
No it's just simple depreciation. But in America you can't depreciate land since the IRS says land doesn't lose value overtime. Hence, the reason for the cost segregation study. So you can only depreciate the building on the land not the land itself. So an expert comes in and does a study and values everything that is in the property. Irs has a schedule to depreciate everything. Like A refrigerator gets depreciated fully in 5 years. Irs has a whole schedule for literally everything. So at the end of the year you add up all the depreciation for the year minus it from income. The amount remaining if any is the amount you pay taxes on. This depreciation can also be carried forward. Meaning If the depreciation amount is more than your income it will be carried Forward into the next year until it is fully used up. This kind of depreciation can only be used against your passive Income not your active income. It can be used against your active income if you can prove that you are a real estate professional. The irs has a criteria for proving that also. Which is basically that you have to spend a certain amount of hours every year managing the properties. Hope this helps.
