Episode #311
311. How 100% Bonus Depreciation Really Works, and Who Should Never Use It with Tom Brodie
Joe Jensen sits down with Tom Brodie of CSSI (Cost Segregation Services), a Texas A&M finance grad who spent 27 years at Shell Oil and even ran dive trips for Houston's largest scuba retailer before finding his calling in cost segregation. In his seven years with CSSI, Tom has helped clients identify over $80 million in additional depreciation expenses. Tom breaks down the jargon in plain English: straight-line vs accelerated depreciation, what actually qualifies as a 5, 7, or 15-year asset (parking lots yes, roofs and HVAC no), why an Airbnb is taxed like a hotel on a 39-year schedule instead of 27.5, and how the 2025 bill made 100% bonus depreciation permanent. The two also get practical about the traps: why flippers should never do a cost seg, how recapture works and why holding three to five years (or using a 1031 exchange) protects your savings, and the surprisingly common bookkeeping error where CPAs overvalue land, sometimes by hundreds of thousands of dollars, locking owners out of depreciation they could legally take. Joe closes with the reminder that none of this is a loophole: the tax code was written to reward real estate investors, so play the game as designed. Tom's company offers free estimates, usually turned around in two business days, with a typical 10-to-1 return on the study cost. Book a free real estate investing strategy call! No experience necessary. Check out the Real Estate Investing School Youtube Real Estate Investing School Instagram Brody's Instagram Joe's Instagram TheFoundMoneyGuy.com
