Summary: Who doesn’t want to save money in taxes? Answer: no one! Learn why the time is now to get your biggest tax savings ever from apartment syndication.
You know what one of our FAVE things about apartment investing is?
It’s reeeaaally hard to choose because we have so many…
But there’s one thing that truly stands out from the rest, and it’s what we’re focusing on today. It’s actually one of the main reasons we got hooked on investing in the first place!
👉You simply can’t beat the amazing tax benefits of apartment syndication. 😍
Yeppp. We’re doing some tax talk. Specifically, we’re getting into the benefits of 100% bonus depreciation – introduced through the Tax Cuts and Jobs Act in 2017.
If that sounded dull, stick with us, okay?
This isn’t just any old chat about numbers and percentages that leaves your eyes glossed over and brain in a blender. 🤣
We’re talking you through some knowledge that will help you keep and grow more of your money while investing.
Seriously, like a LOT more.
There is a sliiiight catch though, and a reason why you’ll want to dive into this info ASAP…
Some of the best tax advantages of the past few years are starting to phase out as early as 2023 and will no longer be accessible by 2027.
But don’t worry. There’s still time to get in on the huge tax savings of 100% bonus depreciation. You will just want to act sooner rather than later.
You know what they say: there’s no time like the present!
So, let’s dive into what 100% bonus depreciation is all about, and how you can still get a piece of the tax savings action. 🤩
Here’s what we’re talking through today:
- Apartment syndication passive investing tax benefits 101
- The big-time benefits of 100% bonus depreciation
- The time to act is now…here’s why
- Your next step to tax savings
Apartment syndication passive investing tax benefits 101
Let’s start with some foundational knowledge first. Sound good?
Passive investing allows you to grow your wealth, without EVER having to get your hands dirty with the daily apartment managing tasks (AKA toilets, trash, termites 😅).
When you invest in a syndication, your deal sponsors handle the day-to-day efforts, but you still reap the rewards.
The rewards = investment return AND tax benefits. 😏
As a passive investor, you’ll receive a tax document called the Schedule K-1. This shows your income and losses for each investment asset, each year.
Some years (usually the first) can show a negative number, but don’t even fret. This negative is not like a bad negative, it’s a GOOD negative!
Enter: Bonus depreciation.
Baaasically your K-1 will show a paper loss, which means you can reduce the taxes you owe on your investment earnings! 🙌
Pretty cool, right?
Now, let’s dive into the nitty gritty of bonus depreciation, and why it gets alllll the heart-eyes emojis from us. 😍😍
The big benefits of 100% bonus depreciation.
Okay so, it’s only been a few years since the Tax Cuts and Jobs Act was passed in 2017. Since then, we’ve been living in the golden age of taking 100% bonus depreciation on certain fixed assets.
Liiiike the commercial apartment assets we invest in.
Before the TCJA, depreciation stayed around 30% or lower. You don’t need to be a math wiz to see the difference in tax savings there!
100% depreciation allows you to pay less in taxes now – giving you time to grow and invest that money instead.
The outcome is MORE passive income as your investments grow! 🤩
You’re able to get your money working for you faster than if you had to set aside a huge chunk for taxes.
Here’s a quick example to really show how awesome 100% depreciation is. 👇
Say you invested $100,000. At 100% bonus depreciation, your paper loss would be $80,000. If the depreciation is 50%, your paper loss would be $40,000.
If you think about these fictional dollar amounts as money that can be funneled into other investments, that 50% difference is significant!
So, what’s the bottom line here?
100% bonus depreciation means saving more money now AND making more money in the future. 🙌
*It’s important to note here that we’re sharing our knowledge and experience, but we are NOT tax professionals. Always check with your own CPA about any tax related advice.
The time to act is now… here’s why.
Now that you know why 100% bonus depreciation is so great, we have to share the not-so-great news about it.
Because all good things inevitably come to an end, and there’s always been a time limit on the Tax Cuts and Jobs Act.
We know…goodbyes are hard. 😥
The phaseout is starting in 2023, which means this is the LAST calendar year to take advantage of the biggest savings possible. Any investments made by December 31st this year will fall under the 100% depreciation benefit.
BUT starting next year, the phaseout schedule looks like this:
2023 – 80% bonus depreciation
2024 – 60% bonus depreciation
2025 – 40% bonus depreciation
2026 – 20% bonus depreciation
Listen. We’re notttt telling you this to bum you out.
We’re actually sharing a great opportunity for you!
We want to make sure you can still get a slice of the 100% depreciation action while it lasts. If you were looking for a sign to start investing this year, this could be it.
Sure. You can still make money if you wait and invest in a couple years. OR you could use the money you save in taxes from investing this year and make EVEN MORE! ✨
We really, really want that for you.
Your next step to tax savings
There’s no use crying over spilled milk, right? If you’re thinking about how you WISH you would have invested sooner to take advantage of 100% bonus depreciation…well, that’s not super helpful.
What is helpful is knowing that you CAN still reap the benefits of TCJA before the decrease starts. If you’ve been waiting for the right time to invest, we honestly believe there has never been a better time than right now.
Especially with the impending recession, high inflation, and tricky economical climate, apartment syndication could be your key to a strong financial future. 🤩
Plus, that timing works out perfectly with the last several months of 100% depreciation.
If you’re interested in saving tons in taxes while creating passive income streams to carry you through whatever may come, we’ve got you!
Here’s your next step: Start looking for a real estate investment deal that closes BEFORE the end of December this year. That way, you can get the full depreciation value for the most tax savings.
But time is of the essence here.
So, we have another option. This is the quickest way to build investment knowledge while getting access to pre-vetted syndication deals…
The Kitti Freedom Club! 🌟
Don’t spend all your precious time and energy searching for the right deal when we could do that for you.
Ready to start taking action towards a better future with resources, support, and guidance every step of the way?
GET ME ON THE KITTI FREEDOM CLUB
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