All Forum Posts by: Yonah Weiss

@Mike Helminger great question! If the properties are US based, the depreciation allocated to you on your K-1s will help you to offset your income from those investments. As far as your Canadian taxes, Canada has a tax treaty with the US that does not double tax you on the income you make in the US (unlike many other countries). Investing in US real estate as a Canadian resident is a great way to shelter that income with the benefits of depreciation.

@Jeremy Marquez as @Jim Kittridge mentioned above it will depend on how the fund is set up. If you own an equity stake in the properties themselves, then self storage like multifamily, or any other type of real estate investment will provide you with income and depreciation (which can sometimes be enough to wipe out your tax liability)

@Yosef Lee You are crushing it! I love the fact that this is only just the beginning! 

I'll be able to say I knew you before you were a real estate mogul! 💪👊

Dave Ramsey gave debt a bad name. Using a mortgage to finance your property is what we call in the industry "good debt", and it's one of the main ways people accelerate wealth building through real estate.  @Bill B. @Filipe Pereira and @Michael Hayworth explained it very well above.

Someone also alluded to depreciation, which is a tax write-off you get based on the purchase price of the property (not how much money you put in). Essentially the more leverage you have, the more depreciation deduction you will get per cash investment.

Correct.

Thanks for the mention Luke! @Alex Macias to keep it simple, the furnishings can be depreciated on a 5-year schedule and are eligible for bonus depreciation. This isn't cost segregation per se, because if you don't own the building, you are not 'segregating' the personal property depreciation from the building structure. 

 Thanks for the mention Daniel! Just seeing this two years later 🤦‍♂️ lol

Looks like an awesome deal @Julian Sanchez! Congrats!

Looks like an awesome deal  @Stephen Resch! Good luck.

First of all congrats on the great deal @Angie Oshea! Depreciation is only based on the purchase price and not the building value, so all you have to work with is the $10K. As you mentioned you will have to allocate a certain amount of that to land. You can either wait until the county assesses the property taxes, and use the percentage they come up with, or get a 3rd party appraisal done, which will usually give a land value.

Another option is to find local sales comps of land sales in the area of the property, and use an average (similar to what an appraiser will do).