Cost Segregation Won't Save You If You're Doing This Wrong

Описание: Real Estate Tax Mistakes That Cost Investors $50,000+ Per Deal

If you invest in real estate, there’s a strong chance your returns look far better on paper than they do after tax.

Not because the deal was bad.
Not because you did anything illegal.
But because taxes were never modeled correctly.

In this video, I break down five real-world real estate tax mistakes I see costing investors tens — and sometimes hundreds — of thousands of dollars per deal.

These aren’t loopholes or write-off tricks.
They’re classification mistakes, timing mistakes, and modeling mistakes that quietly destroy ROI.

If you buy, flip, rent, or hold real estate — this video will change how you evaluate deals.

🔍 WHAT YOU’LL LEARN IN THIS VIDEO

✔ Why real estate is not automatically tax-advantaged
✔ How investors accidentally turn capital gains into ordinary income
✔ When flips get taxed at 35–45% instead of 15–20%
✔ Why depreciation and cost segregation often don’t reduce taxes
✔ How passive loss rules kill expected write-offs
✔ Why ignoring taxes in deal modeling overstates ROI
✔ How sophisticated investors think about tax before buying

🚨 THE 5 REAL ESTATE TAX MISTAKES EXPLAINED

1️⃣ Accidentally Turning Capital Gains Into Ordinary Income
Flipping too frequently can reclassify you as a dealer — triggering ordinary income and self-employment tax.

2️⃣ Not Understanding Passive vs. Non-Passive Income
Most rental losses are passive and can’t offset W-2 or active income, no matter how large they look on paper.

3️⃣ Assuming Real Estate Is Automatically Tax-Advantaged
Holding period, activity level, and income classification matter more than the asset itself.

4️⃣ Doing Depreciation & Cost Segregation Incorrectly
Big paper losses don’t help if they’re unusable — and depreciation recapture surprises investors on exit.

5️⃣ Not Building Tax Strategy Into the Deal Model
A deal that looks incredible before tax can be average — or bad — after tax if this step is ignored.

🧠 HOW STRONG INVESTORS THINK DIFFERENTLY

Sophisticated investors don’t ask:

“What can I write off?”

They ask:

“What does this deal look like after tax over its entire life?”

They model tax outcomes before buying.
They align depreciation with usable income.
They plan the exit before the purchase.

That mindset alone can add tens or hundreds of thousands to lifetime returns — without changing the deal.

⏱️ TIMESTAMPS (CHAPTERS)

00:00 – Why Real Estate Returns Disappear After Tax
01:02 – How the IRS Actually Views Real Estate Activity
01:46 – Mistake #1: Turning Capital Gains Into Ordinary Income
03:12 – Dealer vs Investor Example
03:55 – Mistake #2: Passive vs Non-Passive Income
04:44 – Mistake #3: Assuming Real Estate Is Tax-Advantaged
06:03 – Mistake #4: Depreciation & Cost Segregation Errors
07:27 – Mistake #5: Ignoring Tax Strategy in Deal Modeling
07:52 – How Advanced Investors Think About Taxes
08:47 – Questions You Should Ask Before Buying
09:50 – Final Takeaway

👋 ABOUT THE CREATOR

David Zareh is a CPA specializing in real estate tax strategy, deal structuring, and audit-safe planning for investors and high-income earners.

This channel breaks down how taxes actually work in real estate — clearly, practically, and without gimmicks.

👍 IF THIS HELPED YOU

• Like the video
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• Comment “REAL ESTATE” if you want more content like this

Disclaimer:
This content is for educational purposes only and does not constitute tax or legal advice. Every situation is different — consult your CPA or tax professional before implementing any strategy.

🔎 TOPICS

real estate tax mistakes, real estate investor taxes, capital gains vs ordinary income real estate, dealer vs investor IRS, cost segregation explained, depreciation recapture real estate, passive loss rules real estate, real estate tax strategy, after tax real estate returns, CPA real estate tax advice

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