Episode 60: Why High-Income Investors Overpay in Taxes (And How to Stop)

Most investors think real estate is all about cash flow. But the ones who actually build wealth? They understand the tax game.This episode of the Strength in Numbers podcast breaks down one of the most misunderstood topics in real estate: depreciation, and how it can legally reduce your tax bill in a big way.You will learn why buying and holding real estate is key, how an appreciating asset can still generate paper losses, and how to utilize these strategies effectively. If you’ve ever heard terms like “cost segregation” or “bonus depreciation” and felt confused, this conversation finally clarifies them.Listen and enjoy the show!You’ll Learn How To:Understand why passive investing isn’t a disadvantageUse depreciation to reduce your taxable incomeAvoid common mistakes that kill your tax strategyThink long-term with strategies like 1031 exchangesWhat You’ll Learn in This Episode:(00:56) How exactly does bonus appreciation or depreciation work to shelter income?(02:22) What qualifies you as a real estate professional(04:24) Cost segregation explained in simple terms(06:55) Bonus depreciation and how it’s changing over time(09:28) Why cost seg can still work(12:20) The “tipping point” depends on your income level(13:39) Why zero taxes isn’t always the smartest goal(16:30) Other strategies beyond depreciation(17:34) The 1031 exchange that builds long-term wealth(21:47) Cheap properties don’t give real tax advantages(23:26) Powerful strategy: spouse as a real estate professional(27:28) The short-term rental loophole explainedWho This Episode is For:High-income earners who are tired of seeing huge tax billsReal estate investors who want a better strategyW-2 professionals looking to transition into investingCouples exploring ways to optimize income and tax structureWhy You Should Listen:If you are serious about building wealth through real estate and keeping more of what you earn, this episode is one you don’t want to skip.Connect with Marcus Crigler:Website: https://beccfo.com/LinkedIn: https://www.linkedin.com/in/marcus-crigler-cpa-977a45b7 Facebook: https://facebook.com/marcus.crigler