00:00:00:00 - 00:00:39:52

Mike Pine

Welcome back to the Hidden Money podcast. Today we are doing our second episode of our real estate series. This one's exciting to me. Uber exciting to me because we have seen so much success in our client base, both of them making a lot of money and what we love the most. Not paying much in taxes or saving a ton in taxes.

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00:00:39:57 - 00:00:59:06

Mike Pine

It's exciting. Vacation rentals. It's a big thing that happened, and it tripled in the amount of vacation homes out there during Covid. If you happen out of vacation rental during the Covid shutdowns, but you made money hand over foot whether or not your property was worth it.

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00:00:59:06 - 00:01:01:13

Mike Pine

People got on to that. They bought a lot more.

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00:01:01:13 - 00:01:23:15

Mike Pine

So it's a much more competitive market. But we still see clients going and buying properties. Now, buying property six months ago with these higher interest rates and making positive cash flow. And there's always the tax benefit. And now that we had the one big beautiful Bill act pass on July 4th, bonus depreciation 100% is back and it makes it.

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00:01:23:15 - 00:01:27:51

Mike Pine

And I'm not joking. There are ways we've seen this happen more times than

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00:01:27:51 - 00:01:47:39

Mike Pine

we've seen a lot of times where people are able to save more in taxes than their downpayment was on the vacation rental that they bought. They bought an appreciating an asset that's growing their net worth and their financial freedom. And in reality, the IRS gave them the down payment for it.

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00:01:47:44 - 00:01:50:05

Mike Pine

I love vacation rentals for that

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00:01:50:26 - 00:01:56:24

Kevin Schneider

Yes, and that's a very specific case to where you need to be kind of in the higher tax bracket because.

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00:01:56:24 - 00:01:57:32

Mike Pine

purchase price allocation.

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00:01:57:32 - 00:02:19:24

Kevin Schneider

Or we could do a purchase price allocation, which we'll get into as well of kind of what that even means. But we have seen it especially with the 100% bonus depreciation and just simplicity of math, the tax impact you can have if you structure it right. There's so many rules to vacation rentals that you cannot just go buy a short term rental and then hey, tell your CPA about this.

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00:02:19:24 - 00:02:22:48

Kevin Schneider

There's so much in between, that we have to kind of button up.

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00:02:22:48 - 00:02:26:29

Mike Pine

Not to mention there's a lot of misinformation out there on some well known

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00:02:26:29 - 00:02:26:50

Kevin Schneider

There are

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00:02:26:50 - 00:02:27:32

Kevin Schneider

there are.

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00:02:27:32 - 00:02:28:40

Mike Pine

just be very careful.

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00:02:28:40 - 00:02:45:58

Kevin Schneider

And so when you're when you're kind of vetting if this strategy is right for you, just some simple formula, you take the purchase price of your of the the house you're looking to buy, the vacation rental. I typically do 10% of that. You could do even higher depending on, you know, the type of property and your income level.

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00:02:45:58 - 00:02:52:58

Kevin Schneider

But let's say you buy $1 million property. I would expect 10% of that to be your tax savings, $100,000.

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00:02:52:58 - 00:02:54:57

Mike Pine

Assuming you're in the top two tax bracket.

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00:02:54:57 - 00:02:55:29

Kevin Schneider

Yes.

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00:02:55:29 - 00:02:56:04

Mike Pine

or

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00:02:56:04 - 00:03:06:49

Kevin Schneider

If you're in the 20s tax bracket, you can still buy a short term rental and do the strategy. It's just not going to be as impactful as the person who's making $1 million and buys $1 million property.

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00:03:06:49 - 00:03:28:06

Mike Pine

caveats. We had a client just three weeks ago in the 24% tax bracket who got back more than 10%, about 14% in taxes over two years. Because he got all of his taxes refunded this year and we'll get them all refunded next year. And when all is said and done, he actually got more from the IRS than his down payment was on this beautiful property in Tampa, Florida.

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00:03:28:06 - 00:03:46:14

Kevin Schneider

Yeah. And just from the onset, this may be sound like it's too good to be true in most things in life are that way. If we're up here and we're trying to say, hey, there's tax benefits where the government is going to pay you to get into vacation rentals. Sounds a little weird. It does. And so I know what we're saying is crazy, but it is true.

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00:03:46:14 - 00:04:07:32

Kevin Schneider

And to even back that up, we're getting audit. Some of our clients are getting audited because of this. Now, don't be scared of audits. We're not scared of them. We show our work. Everything we do is above board. But whenever you whenever we're going through this audit, I'm passing the audits, and it's not even close. It's not even a point of contention in the on it that they're really pushing on this strategy.

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00:04:07:58 - 00:04:21:51

Mike Pine

When we have helped the client and they used our strategies that we walked them through and filed those tax returns. We're passing the audits. Sometimes we get people that use someone else and bought a vacation rental and did some funky things they shouldn't have

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00:04:21:51 - 00:04:22:21

Mike Pine

yes,

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00:04:22:21 - 00:04:23:52

Mike Pine

And we're not passing them with flying

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00:04:23:52 - 00:04:24:31

Mike Pine

no,

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00:04:24:31 - 00:04:27:51

Mike Pine

still helping them pass with a much better result than they would have.

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00:04:27:51 - 00:04:47:38

Kevin Schneider

Yeah. And, you know, one example of that is let's get into you know, you mentioned depreciation, the way to get depreciation off the short term rental property and accelerate a large part of the property is doing what's called cost segregation. We have a cost segregation engineer on our team. He's been doing this for his career and he's on our team.

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00:04:47:38 - 00:05:07:38

Kevin Schneider

We've been working with him for seven years. And he's just he's just a good dude. He gets a great, great product, a great result. Our costs are lower, but he defends his cost. SEG if you're audited, he's going to come in and jump in and defend his cost segregation analysis. We are going through an audit on somebody who did a DIY cost seg.

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00:05:07:38 - 00:05:18:00

Kevin Schneider

That is to your point of what you just said. They did the cost seg online by themselves with this group and the IRS is pushing back on it saying, I don't agree with this. Back it up, back it up.

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00:05:18:01 - 00:05:40:49

Mike Pine

And on that do it yourself cost seg website. It says audit defense is included, which is hogwash. They will defend their formulas. But the way that stuff works is you basically have to become an engineer, a real estate professional and give it the inputs, the right kind of inputs. They're not going to defend. You're assumptions that you had to make to create that do it

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00:05:40:49 - 00:05:58:23

Kevin Schneider

Yeah. That's what our engineer will do. He will be in person on the phone. It's an actual human doing this. And so be situations like that. We can't save everything. We are going to do our best. And I think we're actually going to have our engineer redo that cost seg, get similar results and present that, to the to the IRS.

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00:05:58:24 - 00:06:16:12

Kevin Schneider

We'll see if that works. But what a cost segregation is. Let's set the stage there. Because a cost segregation is what gets that magical bonus depreciation and all the cost seg is from a very high level. You buy a rental property. It's when you go to close on that rental property and you hand that closing statement to your CPA.

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00:06:16:26 - 00:06:35:48

Kevin Schneider

It's just going to say, hey, I bought one, two, three Main Street for $700,000. They're going to stick that $700,000 between land and building on your depreciation schedule and just depreciated over its useful life, which short term real estate is 39 years. So they're going to take let's say that building is 600,000. The land is 100,000. They're going to take 600,000 divided by 39.

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00:06:35:48 - 00:06:53:51

Kevin Schneider

That your depreciation. What the accountant is missing is when you bought 123 Main Street for $700,000, you actually bought countertops. You bought flooring, you bought an oven. I bet there's bathrooms. Hopefully you have a toilet and some showers. You have sinks, you have Hvac, you.

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00:06:53:51 - 00:06:54:00

Mike Pine

Have

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00:06:54:00 - 00:07:18:37

Mike Pine

a driveway. You have plumbing, you have decking, you have pools, you have landscaping, all those things. And get this, even though it's just been done for 50 years or more. The IRS says if you're depreciating all of that over 27.5 or 39 years, that one big cost, you're actually breaking the rules. The IRS says that driveway has a 15 year useful life.

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00:07:18:41 - 00:07:38:47

Mike Pine

The the flooring has a seven year useful life, and you're supposed to depreciate it over that period. And you're actually using an impermissible method for depreciation. If you're depreciate it over the 39 years. It just so happens the IRS doesn't care if you claim less of an expense that you're entitled to. They only care if you claim more.

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00:07:38:52 - 00:07:39:33

Kevin Schneider

But

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00:07:39:33 - 00:08:05:37

Kevin Schneider

so that's exactly what it costs. Think about the term cost segregation segregating the cost of that rental property and our engineer or an engineer you find don't DIY this thing. An engineer is going to put a value on that driveway, put a value on that oven, put a value on the flooring, and then instead of buying one, two, three Main Street for 700,000, you have bought a driveway for 30,000 and appliances for 8000.

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00:08:05:52 - 00:08:36:01

Kevin Schneider

All of that's not 39 year property. That's five, 7 or 15 year property in. The kicker in this is if 39 year or 27 year property is not eligible for bonus depreciation, you cannot write off and we have 100% bonus. That means you cannot take 100% deduction on the building. But if you segregate the costs into five or 7 or 15 year class lives, that is called qualified improvement property, which was put in in 2017 under the Tcga qualified.

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00:08:36:06 - 00:09:04:46

Kevin Schneider

And then you can write off 100% of those assets allocated to the five, seven, 15 year class life. So where the big deduction comes in this $700,000 property, let's say 300,000 of it is segregated under 15 years and under you write off $300,000 of depreciation in one year because it's eligible for bonus. You've created bonus depreciation by just being smart and strategizing.

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00:09:05:00 - 00:09:29:38

Mike Pine

But as Kevin's mentioned, and I'm just going to add one more time and we'll drop this. Use a cost segregation specialist. Don't do it. Do it yourself thing. Don't do that. Some CPA is out there. Because we consider doing it. A CPA can go and buy a cost segregation computer program and do the cost segregation study for you, but they're basically doing what you would do on the do it yourself.

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00:09:29:38 - 00:09:47:30

Mike Pine

And unless they're like a real estate contracting with an engineering background, one, they're not going to do as good of a job or a job that might even withstand up to the IRS, even if they guarantee audit defense, that just means they're not going to charge you to defend your audit. They can't guarantee the results. They're not allowed to guarantee the results.

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00:09:47:35 - 00:09:52:46

Mike Pine

Use a true if it's not an engineer, use some other cost seg engineer or specialist, please.

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00:09:52:46 - 00:09:53:21

Kevin Schneider

Yeah.

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00:09:53:21 - 00:10:10:31

Mike Pine

Let's talk about though because we're back. This is short term rentals is our focus here. Short term rentals are better for a lot of people than long term rentals or single family residence. And a long term rental is considered generally from the IRS code.

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00:10:10:41 - 00:10:23:56

Mike Pine

Any property that has an average lease length of more than seven days during the tax year, IRS considers a long term lease. It's a bed and breakfast, so that makes short term rentals different. But why does that matter? And can you kind of explain our income buckets

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00:10:24:05 - 00:10:50:44

Kevin Schneider

Yeah, because if you think about it back in the I think it was back in the 80s, people were making millions of dollars and just going and buying passive real estate. It was a it was a quote unquote loophole because people were offsetting their earned income with assets that they were managing, and they were just scooping up passive real estate, having someone else manage it for them, and they were offsetting their earned income with passive losses.

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00:10:50:49 - 00:11:10:54

Kevin Schneider

Well, we tied that loophole up with section 469 passive activity loss limitations. So where now they're in two different buckets. You have an active bucket and a passive bucket. Now it's not all just one bucket. So if you are self-employed if you are a W-2 employee, maybe you're both and you have an income problem in the active category.

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00:11:11:01 - 00:11:32:27

Kevin Schneider

You can't just go willy nilly passively by real estate do cost seg what we talked about bonus depreciate that and have expect that large loss that you've strategized for to offset your W-2 income. It just won't. So step one in any real estate strategy is first diagnosing where your tax problem is, because let's say you do have a passive income problem.

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00:11:32:27 - 00:11:53:35

Kevin Schneider

Let's say you owned 3 or 4 businesses that you're not you're an equity owner in, but you're not managing the day to day. That could be passive activity income coming into you. Then maybe you could passively buy real estate. So you can kind of see how everyone's tax situation is different. That's why specialized tax planning so key. But step one in any tax plan is always diagnosing where my tax problem is.

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00:11:53:40 - 00:12:17:15

Kevin Schneider

Then what strategies am I going to utilize to offset my income in that category? And when it comes to real estate, short term real estate defaults to passive. Whenever you buy any real estate, it defaults to passive. No, the burden in the activity that is put on you is to move it from passive to active. And then if that's the case, if you have an active tax problem, how do I get real estate in the active bucket.

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00:12:17:30 - 00:12:33:26

Kevin Schneider

Well we're short term real estate and long term real estate. There's two different ways two different tax routes. They're way different tax rule sets. So if you get in short term real estate short term real estate moves from passive to active differently then long term real estate, long term real estate. It's harder to move from passive to active.

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00:12:33:26 - 00:12:52:27

Kevin Schneider

There's ways, and if we'll get into that next episode of long term real estate, there's so many cool things you can do with long term, but that's why you got to meet with a really good tax strategist, because we need to show you how to move short term real estate from passive to active, because there's it's easier than you think, but it's more complex in the details.

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00:12:52:27 - 00:13:13:53

Mike Pine

there's a lot of potential gotchas in there. There's a lot of hoops and hurdles you got to jump through like you can do follow it and qualifies a material participant on your short term rental. But if you exceed the personal use allowance, boom, you don't get to taking that loss against your active income. There's a bunch of little caveats there that you gotta follow.

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00:13:13:57 - 00:13:24:09

Mike Pine

It's safe. This is tried and true and legal if you do it the right way, but you got to do it the right way. And I, I don't do TikTok much,

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00:13:25:33 - 00:13:26:13

Kevin Schneider

If at all.

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00:13:26:13 - 00:13:30:10

Mike Pine

TikTok, and I've tried to look at it a little bit and listen to some of these tax people.

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00:13:30:10 - 00:13:51:20

Mike Pine

There's so much misinformation out there. There's misinformation and podcasts out there do this and you can write it all off, but they don't tell you all the details or sometimes they even tell you the wrong thing. One thing that kills me, and I've heard this on multiple podcasts seen on one TikTok. They say if you have a short term rental, you cannot treat as an active property or take an active loss from it.

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00:13:51:20 - 00:14:09:47

Mike Pine

If you have a full service management company that is categorically wrong. If you do have a full service management company, it's harder, but there are ways to achieve it. So just be careful. Make sure you are working with someone who really knows what they're doing, or you go learn the tax law. Learn a lot of it because there's a lot of details in there.

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00:14:09:47 - 00:14:26:37

Mike Pine

There's not just one tax code, not just any tax code. There's tons of things. And the tax court cases that all apply. But if you follow those, you can have the IRS pay your down payment for a short term rental. Again, that's not always the case. But it can be.

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00:14:26:37 - 00:14:45:18

Kevin Schneider

Yeah. And we've seen to be the case I mean, we're, we're telling you the testimony of our clients on their behalf. And I mentioned in the prior podcast, the entity set up the creation Buying your real estate. We have that real estate planning package. This is exactly what we go through detail in your specific situation. What is how do I move my situation.

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00:14:45:18 - 00:14:57:03

Kevin Schneider

Well, first diagnose your tax situation. But then once we need to move, if you're an active problem, we show you how to move short term from passive to active. We show you creative expenses as well. You're probably driving out to the property. You're probably

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00:14:57:03 - 00:15:01:52

Kevin Schneider

flying to the property if it's across the country you are buying meals, you are.

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00:15:01:52 - 00:15:21:14

Kevin Schneider

You might have children that are helping you run this, or we can maybe make an argument. They are helping you so your vacations you can enjoy your property. Go buy that beach house you love in Florida and utilize it when you're not there. Utilize it for a business purpose. Income generate income generating when you're not there, but then.

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00:15:21:14 - 00:15:22:36

Mike Pine

tenants pay the note for you.

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00:15:22:36 - 00:15:42:42

Kevin Schneider

And then go visit the beach as your family vacation. Now there needs to be a profit or some sort of management reasoning that we're flying to to Florida. There's some reason we're going to check on the property, and we need to make sure we're doing legit work and keeping track, and we'll teach you how to log it and do everything else to make sure you're safe.

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00:15:42:42 - 00:15:58:13

Mike Pine

many technicalities in that, that you just got to be careful and make sure you're working with an expert, but you. Absolutely. So there's a personal use rule. You can't use your property for more than 14 days or 10% of the days rented. Whichever is less,

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00:15:58:13 - 00:15:59:01

Mike Pine

greater,

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00:15:59:01 - 00:16:02:48

Mike Pine

whichever is great. I always get that wrong, for personal use.

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00:16:02:48 - 00:16:08:29

Mike Pine

But if you're there on the property and you and your wife are working, building your furniture from Ikea for ten hours a

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00:16:08:29 - 00:16:22:24

Mike Pine

day for four days, that's not personal use. But the burden of proof is on you, the taxpayer, to be able to prove that you did that. And just because you wrote down that you did this, or you use some kind of time seat time log, that's not always enough to stand up an audit.

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00:16:22:24 - 00:16:50:20

Mike Pine

There's so many technicalities that you need to be aware of, but if you do it, you can do it right. Let me go into this area. Just real quick caveat we'll get more into the tax stuff on this. Kevin and I preach don't ever let your tax tail wag your business dog or your investment dog. Yes, the tax benefits are great, but if you go buy a property that cash flows negative, that you're having to use your hard earned job money to pay down the debt and pay the operating expenses each and every month.

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00:16:50:25 - 00:17:15:12

Mike Pine

Yeah, you got a tax benefit, but that's not a good investment. And again, it used to be until until the vacation rental world blew up an Airbnb convertible got as big as they are there used to be. It was almost it was a lot easier to make money. But now with interest rates as high as they are, property values as high as they are, as much competition as they are in the short term rental market as there is, you got to know what you're doing.

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00:17:15:25 - 00:17:37:05

Mike Pine

We know how to save the tax, but we also work with a company called Odyssey. The clients that we work with that utilize Odyssey and learn from vortices. Sean Moore is the coach and he's learning. He's running on short term rentals for many years, and he's learned how to do it successfully. They make money with them, the ones that do it and follow the advice.

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00:17:37:05 - 00:17:53:25

Mike Pine

Not every single one of them, but a much higher majority of them than the general public. Learn about it. You can go check out the Vacation Rental Revolution that Sean's podcast if you're interested in. Listen to this podcast and see if this is something you want to do, because it does take work and you can't expect to do this passively.

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00:17:53:25 - 00:18:12:39

Mike Pine

You have to be active. You got to qualify for material, material participation, and you better make money with it, or you're not going to be able to do this each and every year. But here's some of the success stories I love. When people have done it, they make money. They are utilizing the tax benefits, and all they had to do that first year is come up with that first down payment.

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00:18:12:39 - 00:18:32:32

Mike Pine

And you can do this sometimes with 10% down, 10% down. They came up with that first 10%. They they employed all the strategies that we taught them that that Odyssey taught them or they just they were really good and self taught and made money and they bought another one in year two with that same down payment because they got it back from the IRS.

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00:18:32:37 - 00:18:55:01

Mike Pine

And then in year three, they bought a third one. And in five years they have five, six, seven of these properties. And suddenly the income coming in from for their vacation rental business is more than their salary was. Now they don't have to work, they might still choose to work, or in a lot of cases, they work less and just do what they want to do, or they turn away clients or get a better job that pays less.

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00:18:55:05 - 00:19:01:57

Mike Pine

You can do this and utilize the tax code to leverage building your financial freedom.

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00:19:01:57 - 00:19:20:33

Kevin Schneider

Yeah, and I like how you mentioned Odyssey. What Sean did not tell us to plug them. He doesn't pay us to plug them. You don't have to pay me to plug this. I can see the fruit in his group. It is a group of people they're going to have. They're going to have lenders in there. We're the CPAs in it.

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00:19:20:38 - 00:19:35:50

Kevin Schneider

Engineers are in there. You got interior designers in there, which is a big deal. It's a big, huge deal. And so if you've never done the short term rental, investment, check Sean out. It's Veda, it's Odyssey with the V at the beginning. When you spell it.

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00:19:35:50 - 00:19:37:55

Mike Pine

SSI dot.

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00:19:37:55 - 00:19:38:13

Kevin Schneider

Com.

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00:19:38:13 - 00:19:56:46

Kevin Schneider

Yes. And one of the one of the big parts of this is they actually do the because they do the actual analytics. It's called RDNA two where they're like, hey, do you want a beach house? Do you want a cabin? Do you want a. Yeah. Do you want a mountain house. Do you want something suburban urban. Here's where the market's hot.

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00:19:56:48 - 00:20:13:39

Kevin Schneider

Here's where it's not. They have prevented properties. Hey we already vetted these properties is you're going to cash flow. Because if you get down to it, you need to cash flow and more often than not, my our Odyssey clients are cash flowing and we're taking care of the taxes. And going back to our prior episode, please go listen to that.

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00:20:13:39 - 00:20:24:16

Kevin Schneider

Because if you want 7 to 10 rental properties, just be careful. Be careful of over leveraging that and finding yourself waking up ten years from now, and you're $5 million in debt that could be weighty.

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00:20:24:16 - 00:20:33:14

Mike Pine

Or be careful of having a lawsuit. You get seven built up and then suddenly something stupid happens on one of your properties and you lose them all in a lawsuit. Be careful. There's a lot that

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00:20:33:14 - 00:20:33:37

Mike Pine

Yep.

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00:20:33:37 - 00:20:34:23

Mike Pine

into this.

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00:20:35:08 - 00:20:36:02

Kevin Schneider

Exiting to

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00:20:36:02 - 00:20:36:26

Mike Pine

the

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00:20:36:26 - 00:20:54:28

Kevin Schneider

because we need to talk about a little bit and exiting in a future episode just because there's so much here. So this is a two edged sword. Well, everything we're talking about here, we're preaching the greatness of it because we see it. We see it impacting people's lives. So I'm excited to tell people, hey, there's ways to save taxes with real estate.

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00:20:54:33 - 00:21:13:06

Kevin Schneider

But there's always a flip of the coin with the with the Treasury Department and the IRC, the Internal Revenue Code. It's never a free lunch if you're if they're going to give you a big deduction on the front end, they're going to say, hey, okay, you legally did that. That's cool. But it's not free. There's going to be a moment when you pay that back.

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00:21:13:06 - 00:21:22:30

Kevin Schneider

That's called depreciation recapture. There's ways to mitigate it. There's ways to do defer it. And we're going to get that into a future episode. But it's not a free lunch.

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00:21:22:30 - 00:21:37:52

Mike Pine

But you got to be careful. You got to plan. You got to know the strategies. Let's just go on a little more basis because you mentioned depreciation recapture. And I see even with CPAs in our firm, when that term comes up, they get like, oh, this is big, complicated. I want to kind of simplify it a little bit.

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00:21:37:52 - 00:22:00:53

Mike Pine

I'm going to oversimplify this example. Let's say you go by whatever $500,000 property and you do all the rules and you get to deduct $100,000 that first year against your W-2, and it saves you $37,000 in tax. If you turn around and sell that property in year two, the IRS says, wait a second, we we thought you were going to operate this forever.

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00:22:00:53 - 00:22:20:02

Mike Pine

So and we have this rule set under depreciation recapture says if you're going to gain that benefit of $100,000 deduction and you turn around and sell that property next year, we want our money back. We want that benefit back. Normally if you don't depreciate an asset, you turn around and sell it. If you have any gain you pay capital gains tax.

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00:22:20:02 - 00:22:41:20

Mike Pine

You've held it for over a year. You pay a long term capital gains tax with depreciation recapture says it's hey, the benefit you got prior. Instead of paying a capital gains tax, if you have a gain, you are going to pay ordinary tax up to that amount of depreciation. Don't get stuck and don't don't get surprised by depreciation recapture.

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00:22:41:35 - 00:22:58:36

Mike Pine

As Kevin was mentioning, there are ways to plan for it. There are ways to mitigate it. Sometimes there's ways to avoid it. But you can't do it if you do it after the fact. Make sure you're doing this with a tax strategist ahead of time before you sell it. Make sure you know when you're buying the property and you're taking these tax advantages.

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00:22:58:45 - 00:23:19:33

Mike Pine

Know what to look out for in case someone gives you an offer you can't refuse. Don't get killed with depreciation recapture. And again I'm going to plug our tax strategy on real estate. We offer an incredible tax strategy package. It covers that. It covers how to qualify as a material participant. It covers the end of these creation. It will educate you.

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00:23:19:33 - 00:23:41:19

Mike Pine

It doesn't do any of the work for you, but it will teach you what you need to do to qualify for these benefits, to maximize these tax benefits, and to maximize future mitigation opportunities when you sell. Because generally when you sell something and you've made a lot of money on it, you're going to pay some taxes, but you shouldn't pay more one penny more than you're legally obligated to pay.

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00:23:41:24 - 00:23:49:55

Mike Pine

If you do, it's because you didn't know the benefits that exist in the tax code, and that's on your tax strategists shoulders or your shoulders if you're not talking to one.

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00:23:50:05 - 00:24:07:46

Kevin Schneider

And with our tax package, it comes with that education. It also comes with our team support. And we even have an add on to where, if you want Mike and I to be your personal CPA, we only have a limited number of seats. Mike and I, we we are in our client's, plans, but generally we can't service our whole client base.

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00:24:07:46 - 00:24:28:44

Kevin Schneider

So we take a limited number of personal clients a year and if you want us to deliver and be your real estate CPA, we would absolutely love to. We have a limited number of seats, but we're going to be there for you with not only the education on the front, but the support. If you have some questions on that tax plan, hey, I've targeted these 2 or 3 or properties and again tell me about material.

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00:24:28:49 - 00:24:48:31

Kevin Schneider

Does this qualify. You know we are not just going to educate you and leave you how to drive. We are there for your support and it's all included in one fee and its serve and the value there is so tremendous. It is. It is if we can save 7000 thousand, depending on your tax bracket, 300,000 in tax, depending on what you're buying.

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00:24:48:35 - 00:25:11:27

Kevin Schneider

Art it is it is a multiple a strong multiple. It's a no brainer. And and just don't shortcut. Don't we specialize. We live and breathe real estate taxation. We have an engineer. Everything's done in-house. For one fee. We can get you taken care of. And there's just like we mentioned so many times, there's so many loopholes and that loopholes, but bear traps that you can step in along this way.

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00:25:11:40 - 00:25:22:51

Kevin Schneider

So we will walk you through the creation, the structuring, the defense, everything from A to Z in one, one place. And then we have your support for you the rest of the year. So yes.

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00:25:22:56 - 00:25:47:07

Mike Pine

And whether or not you use us, please think differently about the tax code. I cannot stand it that our society has come in America has come to see the tax code as this noose around our neck in this just necessary evil. That is not what it is. The tax code is your yellow brick road to growing your financial freedom.

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00:25:47:16 - 00:26:09:46

Mike Pine

There are incentives built all inside of it for good reasons. Depreciation on on real estate is there to incentivize the creation of more affordable housing, oil and gas. The benefit in there at the incentive in there is so that we can be more secure as a nation by being energy independent. There are so many of those incentives in there.

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00:26:09:50 - 00:26:40:24

Mike Pine

Utilize them. Don't fear the tax code. Embrace the tax code. Love the tax code, leverage the tax code. And if you can't do that, find someone that will be your strategist and your advocate. And we do that at Taxpayer Advocacy.

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