Buying a Building for Your Business? Year Eight Decides

Should you buy an office building for your business? A large year-one tax deduction can sound appealing—but will it actually reduce the tax on your business income? In this video, Craig Cody explains how buying a building through an LLC, renting it to your business, and using cost segregation can create a deduction that may get stuck as a passive rental loss. He walks through the ownership structure, the self-rental rules, and the tax consequences when you sell. Before running the tax numbers, consider four questions: • Will you stay in the building for at least seven years? • Are you committed to staying in that market? • Can you afford the down payment without using your payroll cushion? • Do the building and agency have the same owners in the same percentages? You’ll also learn: • How cost segregation and bonus depreciation work together. • Why self-rental income and losses can receive different tax treatment. • How ownership affects whether you can group the rental with your business. • What depreciation recapture can mean when you sell. • How Section 179 restrictions and partial disposition elections affect roof replacements. • How Form 3115 may help eligible owners claim previously missed depreciation. ABOUT CRAIG Craig Cody is a CPA, Certified Tax Coach, and former NYPD lieutenant. His firm works with more than 70 marketing and advertising agency owners every month. He does not own the building his firm operates from and explains why this decision deserves more than a tax calculation. CHAPTERS: 0:00 Where the deduction goes 0:20 Who I am and who this is for 0:50 Four tests before any tax math 1:30 The structure and the cost segregation study 2:40 How many owners does your agency have? 2:55 Where the deduction gets stuck 3:55 What the income side does 4:20 The bill at the sale 5:05 The roof, Section 179, and the partial disposition 5:35 Run the tests, then the numbers BOOK A FREE TAX ANALYSIS https://www.craigcodyandcompany.com/s... EXPLORE THE AGENCY OWNER’S TAX PLANNING GUIDE https://www.craigcodyandcompany.com/t... REFERENCES IRC Sections 168, 179, 1(h), and 1245; Treasury Regulations 1.469-2, 1.469-4, 1.199A-1, and 1.168(i)-8; IRS Cost Segregation Audit Techniques Guide. This video is for general education and is not tax advice for your specific situation. Confirm your facts with your tax advisor before acting. Video Edited by https://ytjobs.co/talent/profile/644694 #TaxPlanning #BusinessTaxTips #CostSegregation #BonusDepreciation #CommercialRealEstate #BusinessRealEstate #TaxDeductions #SmallBusinessTaxes #AgencyOwners #Depreciation #PassiveIncome #RentalPropertyTaxes #CPATips #CraigCody