How to Pay Less in Taxes Without Breaking the Rules

28/03/2025 19 min

Listen "How to Pay Less in Taxes Without Breaking the Rules"

Episode Synopsis

Did you know you could front-load your property depreciation to potentially wipe out your real estate income—legally? Sean Graham, CPA and founder of Maven Cost Segregation, unpacks how savvy investors leverage cost segregation to minimize taxes and maximize cash flow. In this episode, he breaks down complex tax strategies like bonus depreciation, passive vs. active income treatment, and even how building materials can influence depreciation schedules. Whether you’re buying a single-family rental or developing a multi-million-dollar commercial project, understanding these strategies could make a huge difference in your returns.Guest BioSean Graham is a CPA and the founder of Maven Cost Segregation. With a background in tax and accounting, Sean transitioned full-time into real estate as a self-storage investor. He now combines his tax expertise with his real estate experience to help investors reduce their taxable income through cost segregation strategies. His firm serves clients ranging from single-family rental owners to large commercial developers.Episode Highlights and Chapters00:01 – The “boring accountant” who helps you pay fewer taxes01:28 – Sean’s path from CPA to self-storage investor and cost segregation expert03:33 – What is depreciation and why it matters in real estate04:51 – Accelerating depreciation: front-loading expenses for upfront tax benefit05:30 – Residential vs. commercial depreciation schedules06:00 – How bonus depreciation turbocharges cost segregation07:39 – Offsetting passive and active income: real estate professional status and loopholes09:30 – Real-world example: Sean’s Chicago triplex and depreciation in action10:39 – Depreciation recapture and avoiding taxes through 1031 exchanges12:22 – Using depreciation from new properties to offset gains from sold ones13:06 – Depreciating new developments: when it starts and how it works14:58 – Why timing your certificate of occupancy can impact your taxes16:30 – How your building materials can affect depreciation classification18:16 – Wrapping up: two episodes coming, one on cost segregation and one on self-storage Contact InformationTo connect with Sean Graham or explore cost segregation for your property, visit:https://mavencostseg.com/EG – Exclusive discount for listeners of the showEmail: [email protected]: https://www.linkedin.com/in/sean-graham-cpa/ To learn more about the podcast or reach out to host Eugene Gershman, visit:https://giscompanies.co/podcast/