Do you know about cost segregation studies and how they apply to new tax laws? There are exciting changes regarding shorter-life assets that will have a big impact for investors. Immediate expensing will be a boon for real estate. It offsets income made and all other income, then it carries forward indefinitely. However, most business owners hate accounting. It gets in the way and is a distraction from what they should be doing. That’s why there is Duckett Ladd.
Today, my guest is Bill Ladd, a CPA and co-owner of the full-service Duckett Ladd firm that specializes in real estate. He spends a lot of time on Section 42 properties, which features a low-income credit that incentivizes developers to build in depressed communities. But a lot of regulations and rules go along with such development. Even so, Duckett Ladd decided to zero in on this market, own that space, and add value for people.
Topics on Today’s Episode:
- Consult a tax advisor about passive income; there’s all kinds of ways the IRS tries to trip you up
- Tax forms now have limited ability to take net operating losses, which impacts offsetting taxes
- For every property I own, a cost segregation study is a standard practice
- Quarterly meetings with your tax advisor should be mandatory; get together and hold each other accountable
- Good and bad aspects of 1031 properties – do the numbers work? Do they lead to abandoned income and limited ability to defer entirety of gain?
- Partnerships: Find the right fit, make sure to communicate, and be on the same page; adjust your business model as necessary
- I made a financial commitment that I would have clean and perfect books on all accounts, and Duckett Ladd has made that possible
- Every company needs a financial component and should make it a priority from the start; accounting is the language of business, yet is underutilized
Links and Resources Mentioned:
- Duckett Ladd
- Duckett Ladd on Facebook
- Duckett Ladd on Instagram
- Contact Duckett Ladd at (417) 883-6590
“I cut my teeth very early on in the multifamily space and really spend a lot of time on Section 42 properties.” Bill Ladd
“As I’ve kind of grown up in my career and watched other people, it’s really fun to watch because you see certain people that just have it figured out.” Bill Ladd
“There’s all kinds of ways the IRS tries to trip you up.” Bill Ladd
“I don’t think we even understand the depth of how much this is going to help when it comes to generating cash flow by saving on taxes.” Bill Ladd
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