Episode #823 What’s the key to paying ZERO taxes? A cost segregation study. Never heard of it? Most real estate investors haven’t, but we’re about to unlock a world of tax-free income earning using this specific tool. If you’ve wondered how the wealthy pay such few taxes while owning million-dollar-producing real estate, this is how. In today’s episode, you’ll learn how to use cost segregation, too, so you can keep more money in your pocket. Taxes aren’t everyone’s favorite subject, but paying fewer taxes? You can probably get behind that. We’ve brought on CPA and CFP Mitchell Baldridge to explain how he helps real estate investors, large and small, delete their taxable income and build their real estate portfolios faster. Our own Rob Abasolo uses Mitchell’s team to cut his taxes down by more than six figures! In this episode, we’ll explain what cost segregation is, why so many top real estate investors use it to lower their taxes, when you can (and can’t) use it on your properties, the short-term rental tax “loophole” to take advantage of, AND what happens when you do it wrong. ~~~~ Join BiggerPockets for FREE 👇 https://www.biggerpockets.com/signup?utm_source=owned_media ~~~~ Expand Your Investing Knowledge With the BiggerPockets Books: https://store.biggerpockets.com/?utm_source=owned_media ~~~~ Find an Investor-Friendly Agent in Your Area: http://biggerpockets.com/agentmatch ~~~~ Find Investor-Friendly Lenders: http://biggerpockets.com/lendermatch ~~~~ Landlord Tax Loopholes That’ll Help You Pay ZERO Taxes: https://www.biggerpockets.com/blog/real-estate-689?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Can a Cost Segregation Study Help You Lower Your Taxes? https://www.biggerpockets.com/blog/cost-segregation-real-estate?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Connect with Mitchell: Baldridge Financial: https://baldridgefinancial.com/ Better Bookkeeping: https://www.betterbookkeeping.com/ RE Cost Seg: https://www.recostseg.com/ STR Cost Seg: https://strcostseg.com/ Twitter/X: @baldridgecpa or https://twitter.com/baldridgecpa ~~~~ Connect with David and Rob on BiggerPockets: David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none Rob: https://www.biggerpockets.com/users/robuilt?utm_source=youtube&utm_medium=description&utm_campaign=none ~~~~ Connect with Rob (Robuilt): Instagram: https://www.instagram.com/robuilt/ TikTok: https://www.tiktok.com/@robuilto Twitter: https://www.twitter.com/robuiltchannel YouTube: https://www.youtube.com/c/Robuilt ~~~~ Follow David and BiggerPockets on Instagram: @davidgreene24 or https://www.instagram.com/davidgreene24/ @biggerpockets or https://www.instagram.com/biggerpockets/ Show notes at: https://www.biggerpockets.com/blog/real-estate-823?utm_source=youtube&utm_medium=description&utm_campaign=none 00:00 Intro 02:31 Quick Tip 03:56 The Tax-Free Strategy 07:24 Cost Segregation Explained 16:33 Bonus Depreciation 22:07 How to Write Off W2 Income 28:38 The Short-Term Rental "Loophole" 37:07 The Free Down Payment Property 41:04 It's NOT Too Late 43:06 Caveats and Risks 52:07 When is Cost Seg Worth It? 55:08 Connect with Mitchell!