How to Use Cost Segregation

Tom Brodie - CSSI Cost Segregation On Using Bonus Depreciation on Buildings of All Sizes: "So people that own smaller buildings like that, they can actually get a reasonable return on this as well." Discover Hidden Savings in Commercial Real Estate In this week’s episode, we dive into the world of cost segregation and tax strategy with Tom Brodie—better known as “The Found Money Guy.” If you own commercial property or are considering buying, this interview is packed with actionable insights you can’t afford to miss. What is Cost Segregation? Learn how breaking down your building’s components (like carpeting, parking lots, internal walls, and more) can allow you to depreciate assets faster—and potentially save tens or even hundreds of thousands on taxes. (01:11) Why Now? 100% Bonus Depreciation Is Back Understand how the latest tax law changes made 100% bonus depreciation permanent—unlocking huge deductions in the first year for non-structural assets. (08:08) Do You Qualify? Any commercial building, whether a $200,000 office condo or a $10 million high-rise, can benefit from a cost seg study. Find out what kinds of properties see the best returns. (12:22) Tax Credits vs. Deductions—What’s the Difference? Wondering if an R&D tax credit or a deduction is better? Get a clear explanation and why tax credits may have more impact on your tax bill. (00:00, 24:19) Bonus—Green Zip Drywall Tape Discover innovative building materials that accelerate depreciation and offer green construction incentives. (25:19) Enjoy! Visit Tom at: https://thefoundmoneyguy.com and https://cssistudy.com Sponsors: Calls On Call Extraordinary Answering Service, phone answering for small businesses: https://callsoncall.com Some videos have been recorded with Riverside: https://www.riverside.fm/?utm_campaig...   Podcast Overview: 00:00 Helping building owners save on taxes 05:52 Accelerated depreciation for buildings 08:08 Understanding Bonus Depreciation Rules 12:22 Offering free estimates for buildings 13:27 Engineering-based cost segregation process 18:28 Understanding the R&D Tax Credit 21:45 Understanding R&D tax credits 25:20 Reconfiguring and reusing drywall 28:37 Discovering cost segregation 31:16 Discovering cost segregation loopholes 34:27 Handling IRS audit inquiries 39:05 Remote and Office Work Changes 40:03 Understanding property depreciation rules 45:38 Evaluating building estimates and assets 47:34 Understanding condo tax allocations 51:18 Navigating 1031 exchange complexities Podcast Transcription: Tom Brodie [00:00:00]: So that's a dollar for dollar reduction in the taxes you owe. Cost segregation is a deduction. So that's going to lower your amount of income, which means you pay less taxes. So if you got an R and D tax credit of $20,000 and you had a liability of $20,000, now you owe zero because that's going to wipe out the liability. So tax credits are a little bit more valuable than a deduction as far as the impact. James [00:00:27]: You have found Authentic Business Adventures, the business program that brings you the str and triumph and successes of business owners across the land. Downloadable audio episodes can be found in the podcast link found drawincustomers.com we are locally underwritten by the bank of Sun Prairie Calls On Call Extraordinary Answering Service as well as the Bold Business Book. And today we're welcoming, preparing to learn from Tom Brodie of Cost Segregation Services. So Tom, how is it going today? Tom Brodie [00:00:56]: It's going very well. Thank you for having me on the program. James [00:00:59]: Yeah, I'm glad that you're on here. I love the name of your business because it says exactly what you do. So for those that may not know, can you tell us what is cost segregation? Tom Brodie [00:01:11]: Yeah, it's, I know that people stumble over that all the time. What we do is we help commercial building owners depreciate their building faster and say faster just because it's faster than what they're used to. Right. What the CPA or tax preparer will do will take the value of the building and divide it by 39 years or 27 and a half years if it's a apartment complex. What we do is say there's things in your building are not going to last that long. So we do the study to say, okay, you've got this much assets in a five year category, this many assets, you know, in a 15 year category, and break it down that way and then help them depreciate it faster, which means more depreciation expense is less income, which means less income taxes. And so you're really saving a tremendous amount of money in income taxes. James [00:01:59]: So when you're talking about assets, can you elaborate on what those are? Tom Brodie [00:02:04]: It's a commercial building. I mean, so if you got, you know, you're building, you've got the external walls and everything else, but then you've got so much on the inside, internal walls, y...