Neil Henderson chats with Erik Oliver, president of Cost Segregation Authority, to introduce the exciting world of cost segregation and how it can save passive real estate investors a bundle on taxes. Turn up the volume to learn how cost segregation studies work, when they make sense to pursue, plus tips and tricks for maximizing tax savings.Timestamps[1:40] What is a cost segregation study and how does it work?[4:45] Real-life examples of cost segregation savings[8:30] Bonus depreciation rules explained[12:10] Using cost seg to offset W-2 income[17:30] Estimated cost and expected savings[23:20] Managing depreciation recapture[29:20] Other strategies to minimize taxesKey TakeawaysCost segregation accelerates depreciation deductions by breaking out components of a property into shorter useful livesStudies make the most sense on larger commercial properties but can also benefit residential30-35% frontloaded depreciation is typical, more with bonus rulesDeductions can offset other passive or active income if you meet qualificationsExpect at least 10x return for cost of studyMust understand depreciation recapture tradeoffs over long-termResourcesCost Segregation Authority Website: www.costsegauthority.comErik's Email: [email protected] Us On Social MediaYouTube: Truly Passive IncomeTikTok: @trulypassiveincomeInstagram: @truly_passive_incomeFacebook: Truly PassiveTwitter: @trulypassiveDownload Our FREE Passive Investor ToolkitEverything you need to get started in passive investing - Download Here Mentioned in this episode:Sponsored by Nomad CapitalLooking to invest in self-storage? Nomad Capital converts vacant big-box retail spaces across the Southeast into climate-controlled storage, with a target of 20% annual returns. Our fund combines low leverage and high depreciation for strong growth and valuable tax benefits. By buying properties at deep discounts, we often achieve break-even at just 40% occupancy. Join a proven model in a resilient asset class that continues to deliver, even in today’s market. Learn more at nomadcapital.us/tpi. Accredited investors only.

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