Real estate investing is supposed to build your wealth. So why does it feel like you're building the IRS’s bank account instead?

You're hustling, buying properties, managing tenants, and navigating deals. Then tax season hits, and you’re writing big checks to the government. What if you had a legal way to keep more of your money?

Well, there is, and it isn’t new; it’s been around for decades. CPAs know it and the wealthy definitely use it.

It’s called cost segregation.

Cost segregation is a tax strategy that breaks down your property into components and depreciates them faster. That means more write-offs, bigger deductions, and less money to the IRS.

All 100% legal, all by the book.

But how exactly does it work? What’s the process behind it? Is it only for big, commercial buildings?

In this episode, I’m joined by Jeff Hiatt, Director of New Business Development at MSC Consultants and a cost segregation expert. He breaks down what cost segregation is, how it can unlock significant tax savings, and why this powerful strategy remains surprisingly underutilized.

Things You’ll Learn In This Episode

-Why people don’t know about cost segregation

What misconceptions might be preventing more investors from taking advantage of cost segregation?

-The best way to use cost segregation

Cost segregation is most beneficial for property owners looking to accelerate depreciation on assets. When might cost segregation provide little to no advantage for a property owner?

-Wipe out income tax liability

Cost segregation allows real estate investors to significantly reduce or eliminate their income tax liability. How can this lead to major tax savings and more wealth?

Guest Bio

Jeff Hiatt is the Director of New Business Development at MS Consultants (MSC), a leading provider of cost segregation studies. Since joining MSC in 1999, Jeff has been instrumental in expanding the firm's presence in the New England area, establishing strong relationships with CPA firms, real estate professionals, and accounting societies. His efforts have contributed to MSC becoming a prominent name in the field of cost segregation.

A graduate of Indiana University, Jeff is a recognized expert in cost segregation and energy efficiency tax strategies. He has lectured extensively, providing Continuing Professional Education (CPE) training to accounting firms and tax institutes. His speaking engagements include notable organizations such as the Boston Tax Institute, Massachusetts Society of CPAs, and Maine Real Estate Developers Association.

Beyond his professional endeavors, Jeff is actively involved in his community. He is a member of the Rotary Club of Portsmouth, New Hampshire, and serves on the Board of Swim With A Mission, an organization dedicated to supporting veterans and their families.

Find Jeff on LinkedIn here @Jeff Hiatt

Visit https://www.costsegs.com/ and mention Chris Naugle/BYOB for a $100 fee discount

About Your Host

From pro-snowboarder to money mogul, Chris Naugle has dedicated his life to being America’s #1 Money Mentor. With a core belief that success is built not by the resources you have, but by how resourceful you can be. Chris has built and owned 19 companies, with his businesses being featured in Forbes, ABC, House Hunters, and his very own HGTV pilot in 2018. He is currently founder of The Money School™, and Money Mentor for The Money Multiplier.

His success also includes managing tens of millions of dollars in assets in the financial services and advisory industry and in real estate transactions. As an innovator and visionary in wealth-building and real estate, he empowers entrepreneurs, business owners, and real estate investors with the knowledge of how money works.

Chris is also a nationally recognized speaker, author, and podcast host. He has spoken to and taught over ten thousand Americans delivering the financial knowledge that fuels lasting freedom.

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Why Your Real Estate Profits Are Vanishing To Taxes and How To Fight Back w/Jeff Hiatt 37:18 Share

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Why Your Real Estate Profits Are Vanishing To Taxes and How To Fight Back w/Jeff Hiatt