Episode #79: Real Estate Tax Changes with Brandon Hall

With each change in administration, come new changes to the U.S. tax bill. This week’s guest on the Real Estate Asset Management Podcast is Brandon Hall, CPA and managing partner of The Real Estate CPA. In our conversation with Brandon, he breaks down some of the tax changes that have been implemented by the Biden administration thus far, what we can anticipate in the coming years, and how the changes may affect real estate investors. We talk about why S corporations will become less impactful for high-income earners under the new tax bill, and how the Biden administration opted for a surtax, rather than a wealth tax. Brandon discusses the rate at which bonus depreciation will be phased out, and the subsequent relevance of Cost Segregation studies. He predicts an increase in audit rates that will follow the significant budget allocation to the IRS and gives advice on how to prepare. Tune in to find out more about how the tax changes will affect the real estate industry, and how you can remain a few steps ahead and win impending audits!Key Points From This Episode:Brandon’s professional background and experience.2021 tax changes: effect on real estate investors.October 2021’s “vanilla tax bill”.Why S corporations will become less impactful for high-income earners under the new tax bill.How bonus depreciation is going to phase down 20% each year from 2023, until it reaches zero.The relevance of Cost Segregation studies once bonus depreciation has been phased out.How the Biden administration opted for a surtax instead of the wealth tax.2022 tax changes: billions allocated towards IRS taxpayer enforcement.Audit rates expected to increase from 2022.How the tax loss that comes from Cost Segregation could increase your audit risk.What causes people to lose audits, and how to win them by being organized and thinking ahead.Why people should take the IRS more seriously in future.Links Mentioned in Today’s Episode:The Real Estate CPAThe Real Estate CPA PodcastTax Smart Real Estate Investors Facebook GroupThe Real Estate CPA on TwitterThe Real Estate CPA on FacebookAsset Management MasteryAsset Management Mastery Facebook GroupBreak of Day Capital Break of Day Capital InstagramGary Lipsky on LinkedInBest in Class: How to Manage Your Multifamily Asset, Avoid Mistakes and Build Wealth Through Real EstateGarzella Group