Grant Cardone: new stimulus bill allows 1 year CAPEX depreciation

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Grant Cardone: new stimulus bill allows 1 year CAPEX depreciation

Keran Smith
Decatur, GA · Member since 2016 · 5 posts · 1 vote

As the tittle mentions, Grant Cardone stated today that the new:

1. Allows you to depreciate CAPEX done this year in one year on your tax return instead of the normal useful life+

2. Allows you to also amend prior tax returns to get this benefit.

I’ve looked at the CARES act and could not find this anywhere. Can anyone confirm or deny this?

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Natalie KolodijBusiness Member
Moderator
Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
6y

Here's what he's referencing is my guess: 

In the TCJA lease hold improvement property was incorrectly written in as 39 year...when really it's 15. 

So our hands were tied as tax pros. 

Any property with a life under 20 qualifies for 1 year bonus depreciation, vs being depreciated over it's full life. 

So CARES corrected that. 


So any leasehold improvement property can now be corrected to 15 year, and have 100% Bonus deduciton applied

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    I believe that has been the case since 2018 and has nothing to do with COVID-19 or CARES.

    Did Grant offer a free book because his printer made it slightly smaller than he asked them to? He's a shyster. Wealthy, but a shyster none-the-less.

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  • Bill F.
    Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
    6y

    @Keran Smith 

    @Nathan Gesner is right, that was a result of the Trump Tax Cuts of 2018. It starts to sunset in 2022. That tax cut bill is over 1000 pages and has lots of exceptions. Make sure your RE investment and particular structure also qualifies. 

    Grant is a salesman, for good or ill, so before I'd take his advice, which appeared to be wrong in this case, I'd try and figure out what he wants to sell you. 

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  • Keran Smith
    OP
    Decatur, GA · Member since 2016 · 5 posts · 1 vote
    6y

    @Bill F. @Nathan G.

    Thanks for the insight - super helpful. It’s funny because he definitely made it seem as if it was a result of the current CARES act.

    I will go through the tax doc of 2018 to make sure I understand the qualifications.

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  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    6y

    Here's what he's referencing is my guess: 

    In the TCJA lease hold improvement property was incorrectly written in as 39 year...when really it's 15. 

    So our hands were tied as tax pros. 

    Any property with a life under 20 qualifies for 1 year bonus depreciation, vs being depreciated over it's full life. 

    So CARES corrected that. 


    So any leasehold improvement property can now be corrected to 15 year, and have 100% Bonus deduciton applied

    Podcast Guest on Show Pay Less Tax to the IRS This Year With THESE Real Estate Tax Strategies
    Kolodij Tax & Consulting
    WebsiteView Page
    2Reply
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