July 22, 2025 • 27 mins
Join hosts Chris Picciurro, CPA, and John Tripolsky as they welcome back Scott Saunders, Senior Vice President at Asset Preservation Inc., to unpack how the One Big Beautiful Bill Act (OB3) impacts real estate investors.
From 1031 exchanges and opportunity zones to bonus depreciation and estate tax updates, this episode dives deep into tax strategies that savvy investors can leverage immediately. If you’re in real estate—or advising clients who are—you won’t want to miss this breakdown of how OB3 brings long-term certainty and powerful new planning tools.
What You’ll Learn:
• Why OB3 is a major win for real estate investors
• How 1031 exchanges and carried interest survived untouched
• What the new $30M estate tax threshold means for your legacy
• How to stack bonus depreciation with 1031s
• The ongoing benefits of opportunity zones
Key Insights:
Scott explains how OB3 not only protects powerful real estate tools but also expands them. From permanent bonus depreciation to increased SALT deductions and renewed work-related income deductions, this bill sets the stage for years of opportunity in property investing.
Guest Spotlight:
Scott Saunders is a nationally recognized expert on 1031 exchanges and real estate tax strategies. As Senior Vice President of Asset Preservation Inc., he works with real estate professionals, investors, and lawmakers to shape smart policy and education around property taxation.
Practical Takeaways:
• Use 1031s to defer gains—and now pair them with permanent bonus depreciation
• Plan for generational wealth transfer under the new $30M estate tax limit
• Stack Opportunity Zones with other strategies for ultimate tax efficiency
• Real estate investments just got easier to plan—leverage the power of OB3
Resources:
• Teaching Tax Flow YouTube Channel
• Join the community: DefeatingTaxes.com
Episode Sponsor:
Sunsets & Dinks Pickleball Apparel
Score 15% off at teachingtaxflow.com/pickleball with code TTF15
- (00:00) - Summary
- (00:00) - Exploring Real Estate Provisions in the One Big Beautiful Bill
- (04:15) - The Impact of Tax Certainty on Real Estate Investments
- (10:02) - Buc EE's Controversy in Palmer Lake, Colorado
- (11:01) - Real Estate Investment Benefits from Carried Interest and Estate Tax
- (12:37) - Estate Tax Implications on Real Estate and Liquidity
- (15:27) - Exploring Tax Strategies: 1031 Exchanges and Opportunity Zones
- (20:00) - Increased SALT Deduction Benefits New York Residents Until 2030
- (21:03) - Combining Bonus Depreciation and 1031 Exchange for Real Estate Gains
- (22:47) - Positive Economic Impact of New Real Estate Tax Incentives
- (25:51) - Insights on Tax, Economics, and Real Estate Strategies
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
John Tripolsky (00:03):
Hey, everybody, and welcome back to teaching tax
flow, the podcast episode 145.Today, we are gonna jump into
the one big, beautiful bill act.But this time, we're gonna focus
on real estate with a greatguest. But before we do that, as
always, let's take a briefmoment and thank our episode
(00:23):
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John Tripolsky (01:27):
Hey, everybody, and welcome back to the podcast.
Obviously, as I always say atthe beginning of these and,
again, if you're an avidlistener of this, you know these
little, mannerisms, I guess, iswhat is what I'm saying here.
But at the beginning, I alwayssay, don't be lazy and look at
the show title and thedescription because it tells you
what we're gonna talk about. Butwhat it may not tell you is that
(01:47):
our guest back on this one, he'sbeen here before. You know, he's
he's been around here a coupletimes.
He's been in the industry evenlonger. So is, and I'll let
Chris introduce him here in aminute. But, obviously, this
topic, we touched on one lastweek. Right? So we're looking at
the one big beautiful bill act.
Last week, we talked aboutindividuals. This week, we're
gonna make the little trek intoreal estate specifics. So as we
(02:10):
get through this discussion,you're gonna notice a few things
here that really are specific toreal estate, but then also, I
believe that our guest is gonnatalk about something that kinda
goes beyond it, but then bringsit back in, and you'll see how
it impacts real estatespecifics. So before we get into
the guest part and the topic,Chris Pacquero, welcome back,
sir. We open the gates.
We let you come back into yourown show. So here you are.
(02:32):
Welcome.
Chris Picciurro, CPA (02:33):
John, I would say I did my hair because
I'm so excited about our thereturn of our special guest.
But, you know, I don't have agreat hairdo. But I think I
think bald is the new mullet,and, I think our guests would
agree. But I wore my favoritecolor shirt. So if you're not
watching on YouTube and you'relistening, first of all, thanks
for listening.
Second of all, go check out ouru the YouTube, video of this.
I'm so excited, to welcome ScottSaunders back to the Teaching
(02:59):
Tax Flow podcast. We are gonnadive into some of the, real
estate provisions in 0 B 3.Scott's someone that our firm
has worked with for many years.Him and his team do an amazing
job.
They've helped me outpersonally, saved my butt in a
pinch personally once, and I'llbe forever grateful. But Scott,
(03:21):
you're it's a treat to have himon the show because he has a
senior vice president of at API,which is Asset Preservation Inc,
and he is a nationallyrecognized speaker. He's
speaking tons of I don't knowhow many engagements to do a
year. I've gotta imagine atleast 50. So instead of of
course, in person events areamazing, but if if you were
listening or watching, you're infor a treat because you didn't
(03:42):
have to buy the airfare, buy theadmission seat ticket, and pay
all the costs that you wouldusually need to pay to listen to
Scott speak.
So, Scott, welcome back to theTeaching Tax Flow podcast post
OB three.
Scott Saunders (03:56):
Yeah. Chris, great to be with you. You're
right. Post, we got somecertainty, and I'm happy to kind
of unpack why this particular,these new tax laws are good for
real estate investors and someof the implications. So looking
forward to digging into that andflushing out some of those
details.
Chris Picciurro, CPA (04:15):
Well, let's yeah. We are excited also.
We did like John said, we didmention, you know, some of the
provisions that for that helpindividuals. We're gonna do one
on business owners. We're gonnado one on the state.
There's gonna be some overlap,no doubt about it, but you
cannot be too informed aboutthis tax bill. This is a major
overhaul. But let's jump into anarea, that you intimately know
(04:37):
and you are involved on a dailybasis managing an amazing team.
The ten thirty one exchange, wasthat affected by OB three? And
and and then let's maybe we canrun down some of the other
provisions that touches realestate.
Scott Saunders (04:51):
Yeah. The ten thirty one exchanges were not
touched at all with this new taxbill, is great news. So a little
bit of context for that. Overthe last few years, with the
previous administration, theywere attempting to cap ten
thirty one exchanges at half amillion per taxpayer. So married
couple, a million dollars,which, you know, when you think
(05:14):
about it, some people go, Well,that sounds like a lot.
Yet, if you're in a marketthat's appreciated, you know,
coasts, California, you know,New York, Florida, you could
have bought an asset twenty,thirty years ago and had that
much appreciation in just onesingle family rental. You know,
there was a concern, and wespent to give you a little
(05:34):
background, Chris I help lobbyfor the industry along with
National Association ofRealtors, and I probably meet
once a week with somebody on theSenate Finance Committee or
House Ways and Means, so on thetax committees. We educate them
just on the economic benefits ofSection ten thirty one, how it
creates close to a million jobsand how it stimulates
(05:56):
transactions. So, to answer yourquestion, ten thirty one not
affected, and to me, we've got alot of certainty. What's kind of
nice about having this bill doneand let's take, you know, not
look at the political side andall the other applications, but
we have what we have.
One of the big things that's anice takeaway is we now have
certainty, and I think there's alot of value in that for
(06:18):
business owners, investors, andtaxpayers. When we had the Tax
Cuts and Jobs Act, you know, wehad different provisions like
bonus depreciation that phasedout, and we had a bunch of
things that were going to end atthe end of this year. And what
that does to investors is itcreates a sense of uncertainty,
and they don't know how to moveforward, or they're at least
(06:38):
tentative. And havingtentativeness in the economy,
it's not good for anybody. So,what I like about this bill is
that so many of the features arepermanent, so as real estate
investors, we know what it lookslike.
Now, when we say permanent, I'lldo that in air quotes, right?
Things are like this until weget another administration with,
(07:01):
you know, that maybe changesthings down the road. But for
the foreseeable future, what wehave now doesn't have a sunset
provision where it expires. Andso to me, when it comes to
10/31, capital gain taxes wasn'tchanged, carried interest wasn't
changed, the net investmentincome tax stayed the same. So a
lot of those things stayed thesame, and now we've got
(07:23):
certainty there.
But we did get changes on otherareas too, so that a lot of
those are very positive for realestate.
John Tripolsky (07:30):
So Scott, here's a question for you. Did you read
1,000 something pages?
Scott Saunders (07:35):
Oh, that's a good question. And scout's
honor, no. I did not read theentire bill. I did not.
John Tripolsky (07:43):
I wanna find the person or people that did and
basically say, man, I wish I hadthat much time and focus to do
that. I don't know if I don'tknow if that's a positive or
negative if they did it, but youyou did bring up a good point
here too, certainty. Right? Sothat's something that we don't
see a lot. But as you kind ofalluded to, I mean, what a great
(08:04):
thing to have.
I mean, Chris, even, you know,kind of crossing a little bit of
a bridge. Right? You guys havereally built that into your
private practice, pricecertainty, and and with clients
there. So, I mean, Scott, you'retalking about this as a market
as a or in the market as awhole. Right?
Like, what a beautiful thing.Right? Like, what? Even down to,
I mean, the total extreme. Whatif we knew that gas prices were
(08:25):
gonna stay the same every day?
Right? It might be good. Itmight be bad, but you can plan
for it. Right? So that's a hugething.
Right?
Scott Saunders (08:32):
Yeah. You know, John, that's great you brought
that up. Planning for it. Aninvestor, if you just think
about what we do as an investor,we take capital today, we part
with it, right, with theexpectation that in the future
we're going to get a return ofsome sort, whether that's
appreciation, dividends, income,but we're parted with capital
that we can use today to put itaside in the future to have it
(08:55):
grow and multiply in somefashion. And now we've got laws
that at least we know the rulesare fixed, and so it makes it
easier to make decisions.
It's very tough when you'represented with all these
different investment options tomake a decision when you don't
know exactly what's going tohappen and you're just
wondering. So I think themarketplace, as they begin to
(09:16):
digest this, I think this isgoing to be net positive for
people, knowing what the rulesare and then being able to start
to execute and then weigh thepros and cons of different
investments, you know, realestate or other investments,
knowing that. So that's a bigfactor. I call it the power of
certainty. And I think it'sgoing to be a little bit of a
relief, you know, not only totax preparers, but to investors,
(09:38):
to say, Okay, we know the rules.
Now we can operate in thissandbox knowing what the rules
are.
John Tripolsky (09:44):
Yeah. Talk about planning. Right? It's the same
with gas prices. Dumb analogy,but it's very related.
If you knew that it was the sameprice from here to Florida, and
I'm in Michigan, you know, youmight not have to swerve off the
road at at Buc ee's, and, youknow, Chris loves going there.
So, you know, trying to get thethe best deal on fuel. If
anybody's watching this, he'sshaking his head drastically.
Scott Saunders (10:02):
Alright. Alright. Alright. You had to
bring up Buc ee's. I'm gonnagive you a little tangent.
The Wall Street Journal's leadarticle this weekend was about
Buc ee's in my little town, palPalmer Lake, Colorado. If you
see it. So there's a Buc ee'strying to come in, and they want
to go in this beautiful ruralspot pine trees, beautiful views
next to open space, and thelocal community is not happy,
(10:25):
and they're fighting back. Now,I don't know who wins. I think
the big corporations have alittle bit more horsepower.
But, anyway, Buc ee's and mylittle town, Palmer Lake,
Colorado, was featured on theWall Street Journalist. Wow. Big
article about that.
Chris Picciurro, CPA (10:41):
Wow. I don't, yeah. I'm not gonna talk
about Buc ee's today because I'mgonna stay in a good mood. And,
couple things on Scott, can youtalk about, you know, I mean, as
as simple as possible, youmentioned carried interest in
that part of what o b three keptalive.
Scott Saunders (11:01):
It it is. Yeah. There there was talk. The
president said maybe we need tomodify that. And in the final
bill that was passed, thatstayed the same.
So that is a net positive forreal estate. People invest in
projects, and having a lower taxrate makes it so that they're
gonna invest more. If we had ahigher rate, that would have
(11:21):
dissuaded investment. So I thinkthat's a positive for
development and for real estate.
Chris Picciurro, CPA (11:28):
There's something else I that I think,
you know, sticking with realestate. You might not think that
this has an effect on realestate, but I actually think it
it allows people to potentiallyconsider ten thirty one
exchanges. And and what I wannatalk about also is opportunity
zones, which I I call that thecousin of a ten thirty one
exchange. But the change inpermanence to a state tax, I
(11:50):
think that's a numb probably thenumber one permanent like, I'll
give you an example. I know Johnlikes his gas example.
My example is, sir, you know, inour private CPA practice, we're
a membership based, and we'revery transparent with pricing.
You can you imagine going to arestaurant where there's no
prices on the menu? You mightorder something. You might eat
it. You might kind of enjoy it,and then it might be a price
(12:10):
less than you thought.
Wouldn't it have been nice toknow it was less while you're
eating the meal and thinking tomyself, I wonder how much is
this is gonna cost me? So so Ilike that certainty, but, yeah,
can you talk about the estatetax and what what you think
that's gonna play a role withten thirty one exchanges because
I feel like a lower estate taxdrives people to have a little
(12:32):
more liquidity and less lessamount put into real estate.
Scott Saunders (12:37):
Yeah. So the estate tax has now increased to
15,000,000 per taxpayer. So ifyou're a married couple, you're
talking a $30,000,000 cap.Anything above that then faces
estate tax. When you look at,you know, in terms of just doing
long term planning, that's apretty high threshold.
30,000,000 is a fair So amountof what it means is from an
(13:02):
exchange perspective, people cancontinue to exchange from one
asset to the next and the nextand continue to do that and
build up a larger portfolio andbe able to hand that off to
their heirs who get, again, asyou as everybody knows, a full
step up in basis to the fairmarket value at the time they
pass away. That's a lot. Youknow? I I think something like
(13:25):
99.7% of the of America is gonnabe beneath that threshold.
That's a really small groupthat's above 30,000,000.
So, again, that's a big benefit.That's a win for rural America,
for farmers and ranchers. It's awin for the average American
that maybe has a few assets, andthey want to go ahead and
(13:46):
continue building theirportfolio to pass on. So huge. I
think that's a great thing.
I'm really glad it came out thatway, and I think a lot of
taxpayers should be reallyfortunate. And again, for
planning, if you're beneaththose thresholds, it makes
planning a lot easier. You don'tneed to go through all of the
complicated mechanisms that youneed to do if you're a really
(14:07):
high net worth individual.There's always going to be a
little niche market for that,but the average American is
probably gonna do quite well atthat $30,000,000 threshold.
Chris Picciurro, CPA: Absolutely. And you think that (14:18):
undefined
like, I think a lot of bigmisconception when we look at
estate tax is that people assumethat if I you know, someone has
$5,000,000 worth of assets thatit's all liquid, and that could
be very not not the case at all.Right? It could be all in their
business, which isn't a lot ofyou know, maybe it's a lot of
IP. Maybe it's maybe they have alot of real estate that's
producing income, but it's notliquid.
(14:40):
So, you know, that's that'sthere's a big difference between
liquidity and your gross estate.There's no doubt
Scott Saunders (14:46):
about Hey. Absolutely. I've I've got a
friend of mine actually inTennessee, very successful
investor and he always just, assoon as he gets money, replows
it into another project. So hisnet worth is very solid, but his
liquidity is really not thatmuch because he keeps putting it
back in and growing hisinvestments. So I think that's
real common.
You know, even in rural America,you have people that are land
(15:08):
rich, but they're operatingtheir business with kind of
tight margins, but yet the valueof the land is worth a lot. But
they can't really capitalize onthat in a lot of cases.
Chris Picciurro, CPA (15:19):
Right. And you mentioned capital gains
remained unchanged, so we knowthat we have some lower capital
gain rates in Yep, the long we
Scott Saunders (15:28):
do. Yeah, we've got the lower rates. Those two
thresholds just continued on atthe 1520%. So again, those are
good. Now, in my world of tenthirty one on real estate, I
think people are better off, youknow, doing that.
And the other thing you kind ofalluded to, we've got the
opportunity zones. These cameabout. Senator Scott proposed
(15:48):
these, and they became part ofthe Tax Cuts and Jobs Act. And
the whole purpose of anopportunity zone was to take
capital, draw it into thesedistressed areas where they
needed some refurbishment,redevelopment, and to try and
improve them. And it was amassive success.
I forget the last data it was ahuge number many, many billions
(16:09):
went into these. So opportunityzones, which are kind of
related, they're a differentstrategy than ten thirty one,
they're broader. You can usethem for any capital gain. Sell
a business, sell crypto, sell anart collection, your gold,
whatever it is with massivegain, you can invest these
Opportunity Zones. So the waythey were before is they capped
(16:31):
out, they ended.
Now they're around inperpetuity, so we can invest in
them. They were expanded. It's agreat one, and as you know, I
don't know how much you've goneto do it on other broadcasts,
but any gain that you have afterthe tenth year is tax free, so
there's an incentive to investlong term in these communities.
(16:52):
What a benefit, literally a taxfree We
Chris Picciurro, CPA (16:56):
used Opportunity Zones significantly
in '9 in eighteen, nineteen,twenty, twenty one because they
were set to expire here in '26,I believe. We we didn't see as
much going on with qualifiedopportunity zone funds. I love
it because you can yeah. As younailed it, just invest all your
capital gain or a portion of it.And I wanna think about, like,
(17:17):
you know, we're all fromdifferent parts of the country.
Here in Nashville, The Gulch wasan area that was part of an have
you been to have you been to TheGulch in Nashville recently? You
see it's it's amazing. You know?Yeah. There's some pockets, but
that was an part of anopportunity zone fund.
I was just in Atlanta. You know,Buckhead's a nice area, but
there are some really roughparts there that have been
redeveloped. In Detroit,Midtown. Midtown looks fabulous
(17:39):
now in the right north ofDowntown Detroit. I know that's
where John's at.
So I think it's it's been aswoon for people because
ultimately, that money is stillstaying in the economy, and
they're still paying labor.Labor is paying payroll taxes.
You know, I I would beinterested. We'd have to look at
our friends from the taxfoundation. They break down the
(18:00):
economic impact on the jobgainer loss on all these
provisions.
We haven't hit that part yet.But that's that's phenomenal.
And the other thing, Scott, Idon't know if you've seen this.
You can you know, we always talkabout and and you meant, I know
you kindly mentioned before theshow our our quick quick tips,
quick reels. We have a whole onthe YouTube channel, a whole,
(18:21):
quick tips, playlist that taxstrategies like to play
together, like to be stacked.
So let's say you have a businessowner that's selling his
commercial building or hercommercial building and could do
a $10.31 exchange with that, butthen the stock in their company,
they could do a qualifiedopportunities on fund. So they
could do both. It's not one orthe other.
Scott Saunders (18:41):
Yeah. That's isn't that great that the tax
code has all these options? Soyou you've got all these tools
now at your disposal as aninvestor, and you're right. Use
a ten thirty one on your realproperty, defer the taxes,
reinvest, redeploy it assomething other. Use something
like an opportunity zone now forthe other gain with the business
and other things.
(19:02):
So honestly, we're probably, youknow, from an excitement
standpoint, we're at the mostexciting time to be a business
owner and investor. We've gotall these great tools now at our
disposal that we can use, and soI think it's really incumbent on
people. Get with their taxadvisers and find out all that's
in this and take advantage ofsome of these new provisions.
(19:23):
There's a lot going on.Absolutely.
Chris Picciurro, CPA (19:26):
Well, know there was a couple two things I
wanted to I mean, there's somany things, and and we're gonna
probably harass you to get somecontent from you down down the
road in the teaching textualYouTube channel. But two things
I wanna touch on before I forgetthe actually, maybe three
things. But the I just had ameeting with a private CPA firm
client. He's a resident of NewYork City. He's a doctor, and he
(19:50):
now will be able to deduct$40,000 of state and local
income tax instead of 10,000.
Salt I mean, so we you know,what do we see with the salt tax
deduction? That's not what youput on your eggs.
Scott Saunders (20:02):
Now salt's important. You know? I mean,
think about it. For your averageperson, if you're in a market,
and I know the Long Islandmarket pretty well, we've got an
office out there, those propertytaxes are enormous. If you were
capped at 10,000, now you go upto 40,000, and I believe it
adjusts up by 1% every year, soa little index, That means
(20:22):
you're going to have more takehome.
You're going to have more inyour pocket. That's good for
everything. It's good for allinvestments. It's good for real
estate. If you want to save upfor a down payment on your first
rental property, you're going tohave more cash to do it.
So I I think that was a a greatoutcome, and I know people in
those states that we're havingthose higher property taxes are
(20:43):
probably excited to finally seesome relief in that area. So
that'll be you know, that thatone's not permanent. I think it
sunsets out at 2,030, I believe.But, hey, there's a time window
now to take advantage of that,and it I'll tell you, lot of
people fought hard to bump thatup. So that's a great provision
for sure.
Yeah. Absolutely.
Chris Picciurro, CPA (21:06):
I know bonus depreciation got favorable
treatment, which is which soundsgood. Favorable. It's great.
It's being friendly. Right?
That's Let's talk
Scott Saunders (21:16):
a little bit about bonus.
Chris Picciurro, CPA (21:17):
So let's talk about because bonus
Scott Saunders (21:18):
to $10.31, those two concepts kind of link
together. So bonus depreciationnow, we get a 100% bonus
depreciation with no sunset.This is gonna be a game changer
on real estate. Commercial, Ithink it's gonna get things
moving. I think people are gonnatrade up.
For those who qualify, and, youknow, I'm sure you unpack that.
(21:39):
It's a little complicated on thedifferent types of income and
all that, but bonus depreciationis a great strategy to take
advantage of in the year ofacquisition. So we're going to
see that. Now the downside withbonus is that you've taken all
that depreciation up front, soif you sell it in a taxable
sale, you're now going to haveto recapture that. So lo and
(22:01):
behold, what do we have as asolution?
The ten thirty one exchange,right? So then ten thirty one
gives you a way on the back endwhen you're exiting the asset,
and now it's time to sell out ofit, do a ten thirty one exchange
and redeploy it. So really, thethe perfect strategy is to marry
those two concepts. Number one,take advantage of bonus when you
(22:21):
acquire the asset to the extentthat you can, hold it, and then
when you're now, it's time toexit out of that, take advantage
of a ten thirty one exchange anddefer your gain, and you can do
that indefinitely over and over.So combine those two concepts,
this is a big deal, and and I'lltell you, this affects the whole
real estate industry.
(22:42):
Commercial real estate hasbigger numbers, so certainly
it's going to have an impact onthat. REITs, you know, a lot of
entities will do that, socommercial. The residential
market, which I know well, andI'm a residential investor, you
can take advantage of thatbuying a little $203,100,000
dollars residential property.Same way as commercial, it's
just the zeros are a few less.And then the third one, which is
(23:06):
a great opportunity, is theshort term rentals.
Taking advantage of the shortterm rental loophole where you
only need over one hundred hoursand more than anybody else. So,
commercial market's affected,residential market, and short
term rentals, that's pretty muchthe whole real estate industry,
except for new construction.That's big component. Right. So
(23:28):
you've the bonus
Chris Picciurro, CPA: depreciation as your appetizer, (23:30):
undefined
and then you've got your $10.31as a marvelous dessert, and then
you could maybe we're all hungrytoday. I don't know. Maybe it's
me. But, you know, then you'vegot owning that property. Well,
as we wrap it wrap up, is thereare there any final nuggets?
I know there's some that youwanna leave us with. I know
there's some different credits.There's some new rules of
(23:51):
factory building.
Scott Saunders (23:54):
Let me give you two of them, Margaret. Two
separate ones. So I'll give themto you kind of in rapid fire.
One, I think this tax billreally rewarded work. So that's
important to remember.
First 25,000 of tips, nottaxable. Over time, up to
12,500. So that means there's areward for work, and the impact
(24:14):
is going to be twofold. Numberone, people can save up more for
their down payment. They'll havemore disposable income after tax
income.
Number two, if you're a renterand a tenant in those types of
things, you're going to havemore money. And so I think some
of these markets where you'vegot a lot of, let's say,
healthcare workers, firstresponders, people like that,
(24:34):
you might have some of them withmore money. A market like Las
Vegas might do very well becausethey've got all the casinos. So
that's one takeaway. The otherone on kind of the other side,
pulling it back to a macroperspective, in this bill were
all sorts of incentives toencourage real estate.
Condos, a condo development,they're going to get an
additional tax provision. Lowincome housing gets some
(24:57):
additional credits. The listgoes on and on, and you know,
there's something called the QBIdeduction, which is now
permanent, right, that 20%. Thataffects 2,000,000 real estate
partnerships. So overall, therewere many things that were
included in this bill that aregoing to be very positive for
real estate.
It's going to take a while forthat to trickle into the
economy. It may take a year ortwo or three. You mentioned
(25:19):
factories new factories get aspecial expensing component if
you're an owneruser. That's ahuge one to bring manufacturing
back to America, which brings innot only manufacturing, but it
brings in jobs and the incomeswith that. So, so many positives
there.
I'm really excited about the,you know, the next few years. I
(25:41):
think economically, this isgoing to be very, very, very
positive, and those people thattake advantage of these
provisions are going to win bigtime. So those are a few
takeaways.
John Tripolsky (25:51):
Awesome. Well, wait. Wait, Scott. That's
actually a great spot to evenwrap this one up because as
Chris, I believe, threatenedeverybody in a good way at the
beginning of this, we're gonnahave to have you back on as
always. It's it's this is great.
It's kinda like reverse fishing,but, like, we keep you know, you
keep trying to get away, and,nope, we're bringing you back
in. So good luck. And, yeah, Imean, this is this is a great
(26:12):
topic. Right? So we're wrappingthis up.
We did last week's. We did thisone more specific on real
estate. So as we dive into thisa little bit more, we, we keep
guys like this in our proverbialRolodex, like Scott, because
that way we can just pull themin, grab a grab a nugget from
it, and we can save everybodyelse the, you know, the paper
cuts by a thousand pages ofhaving to read the entire bill.
So I I look forward to it. And,Scott, you know, you're you're
(26:34):
always welcome back, man.
We love having you.
Chris Picciurro, CPA (26:36):
Thank you so much, and we appreciate it.
Scott Saunders (26:39):
Hey. It's always great busy with you guys. Always
fun to talk tax and economics,so thanks a bunch.
John Tripolsky (26:45):
Absolutely. Absolutely. And, again,
everybody, we'll dive into thismore along with other topics. Be
sure don't be lazy. As I saidbefore, show notes, if you're
watching, it's probably belowyou.
Depends on what screen. It mightbe off on the other side there.
Follow some of these links.Reach out to Scott. Reach out to
anybody from our team.
There is that curated YouTubeplaylist specific on the one
big, beautiful Bill Act. Socheck that out. Subscribe to the
(27:08):
YouTube channel. Tons ofcontent. See you back here again
next week on the teaching flowpodcast.
Different day. Different date.Same day of the week, completely
different topic. We'll seeeverybody soon. Bye now.
Disclaimer (27:26):
The content provided is for educational purposes
only. We encourage you to seekpersonalized investment advice
from your financialprofessional. For all tax and
legal advice, please consultyour CPA or attorney. Investment
advisory services are offeredthrough Cabin Advisors,
registered investment advisor.Securities are offered through
Cabin Securities, a registeredbroker dealer.
The content of this podcast doesnot constitute an offer of
(27:47):
securities. Offerings can onlybe made through an offering
memorandum, and you shouldcarefully examine the risk
factors and other informationcontained in the memorandum.
Hey, everybody, and welcome back to teaching tax
flow, the podcast episode 145.Today, we are gonna jump into
the one big, beautiful bill act.But this time, we're gonna focus
on real estate with a greatguest. But before we do that, as
always, let's take a briefmoment and thank our episode
(00:23):
sponsor.
Ad Read (00:28):
Hi. Chris Picciurro here, founder of Teaching Tax
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John Tripolsky (01:27):
Hey, everybody, and welcome back to the podcast.
Obviously, as I always say atthe beginning of these and,
again, if you're an avidlistener of this, you know these
little, mannerisms, I guess, iswhat is what I'm saying here.
But at the beginning, I alwayssay, don't be lazy and look at
the show title and thedescription because it tells you
what we're gonna talk about. Butwhat it may not tell you is that
(01:47):
our guest back on this one, he'sbeen here before. You know, he's
he's been around here a coupletimes.
He's been in the industry evenlonger. So is, and I'll let
Chris introduce him here in aminute. But, obviously, this
topic, we touched on one lastweek. Right? So we're looking at
the one big beautiful bill act.
Last week, we talked aboutindividuals. This week, we're
gonna make the little trek intoreal estate specifics. So as we
(02:10):
get through this discussion,you're gonna notice a few things
here that really are specific toreal estate, but then also, I
believe that our guest is gonnatalk about something that kinda
goes beyond it, but then bringsit back in, and you'll see how
it impacts real estatespecifics. So before we get into
the guest part and the topic,Chris Pacquero, welcome back,
sir. We open the gates.
We let you come back into yourown show. So here you are.
(02:32):
Welcome.
Chris Picciurro, CPA (02:33):
John, I would say I did my hair because
I'm so excited about our thereturn of our special guest.
But, you know, I don't have agreat hairdo. But I think I
think bald is the new mullet,and, I think our guests would
agree. But I wore my favoritecolor shirt. So if you're not
watching on YouTube and you'relistening, first of all, thanks
for listening.
Second of all, go check out ouru the YouTube, video of this.
I'm so excited, to welcome ScottSaunders back to the Teaching
(02:59):
Tax Flow podcast. We are gonnadive into some of the, real
estate provisions in 0 B 3.Scott's someone that our firm
has worked with for many years.Him and his team do an amazing
job.
They've helped me outpersonally, saved my butt in a
pinch personally once, and I'llbe forever grateful. But Scott,
(03:21):
you're it's a treat to have himon the show because he has a
senior vice president of at API,which is Asset Preservation Inc,
and he is a nationallyrecognized speaker. He's
speaking tons of I don't knowhow many engagements to do a
year. I've gotta imagine atleast 50. So instead of of
course, in person events areamazing, but if if you were
listening or watching, you're infor a treat because you didn't
(03:42):
have to buy the airfare, buy theadmission seat ticket, and pay
all the costs that you wouldusually need to pay to listen to
Scott speak.
So, Scott, welcome back to theTeaching Tax Flow podcast post
OB three.
Scott Saunders (03:56):
Yeah. Chris, great to be with you. You're
right. Post, we got somecertainty, and I'm happy to kind
of unpack why this particular,these new tax laws are good for
real estate investors and someof the implications. So looking
forward to digging into that andflushing out some of those
details.
Chris Picciurro, CPA (04:15):
Well, let's yeah. We are excited also.
We did like John said, we didmention, you know, some of the
provisions that for that helpindividuals. We're gonna do one
on business owners. We're gonnado one on the state.
There's gonna be some overlap,no doubt about it, but you
cannot be too informed aboutthis tax bill. This is a major
overhaul. But let's jump into anarea, that you intimately know
(04:37):
and you are involved on a dailybasis managing an amazing team.
The ten thirty one exchange, wasthat affected by OB three? And
and and then let's maybe we canrun down some of the other
provisions that touches realestate.
Scott Saunders (04:51):
Yeah. The ten thirty one exchanges were not
touched at all with this new taxbill, is great news. So a little
bit of context for that. Overthe last few years, with the
previous administration, theywere attempting to cap ten
thirty one exchanges at half amillion per taxpayer. So married
couple, a million dollars,which, you know, when you think
(05:14):
about it, some people go, Well,that sounds like a lot.
Yet, if you're in a marketthat's appreciated, you know,
coasts, California, you know,New York, Florida, you could
have bought an asset twenty,thirty years ago and had that
much appreciation in just onesingle family rental. You know,
there was a concern, and wespent to give you a little
(05:34):
background, Chris I help lobbyfor the industry along with
National Association ofRealtors, and I probably meet
once a week with somebody on theSenate Finance Committee or
House Ways and Means, so on thetax committees. We educate them
just on the economic benefits ofSection ten thirty one, how it
creates close to a million jobsand how it stimulates
(05:56):
transactions. So, to answer yourquestion, ten thirty one not
affected, and to me, we've got alot of certainty. What's kind of
nice about having this bill doneand let's take, you know, not
look at the political side andall the other applications, but
we have what we have.
One of the big things that's anice takeaway is we now have
certainty, and I think there's alot of value in that for
(06:18):
business owners, investors, andtaxpayers. When we had the Tax
Cuts and Jobs Act, you know, wehad different provisions like
bonus depreciation that phasedout, and we had a bunch of
things that were going to end atthe end of this year. And what
that does to investors is itcreates a sense of uncertainty,
and they don't know how to moveforward, or they're at least
(06:38):
tentative. And havingtentativeness in the economy,
it's not good for anybody. So,what I like about this bill is
that so many of the features arepermanent, so as real estate
investors, we know what it lookslike.
Now, when we say permanent, I'lldo that in air quotes, right?
Things are like this until weget another administration with,
(07:01):
you know, that maybe changesthings down the road. But for
the foreseeable future, what wehave now doesn't have a sunset
provision where it expires. Andso to me, when it comes to
10/31, capital gain taxes wasn'tchanged, carried interest wasn't
changed, the net investmentincome tax stayed the same. So a
lot of those things stayed thesame, and now we've got
(07:23):
certainty there.
But we did get changes on otherareas too, so that a lot of
those are very positive for realestate.
John Tripolsky (07:30):
So Scott, here's a question for you. Did you read
1,000 something pages?
Scott Saunders (07:35):
Oh, that's a good question. And scout's
honor, no. I did not read theentire bill. I did not.
John Tripolsky (07:43):
I wanna find the person or people that did and
basically say, man, I wish I hadthat much time and focus to do
that. I don't know if I don'tknow if that's a positive or
negative if they did it, but youyou did bring up a good point
here too, certainty. Right? Sothat's something that we don't
see a lot. But as you kind ofalluded to, I mean, what a great
(08:04):
thing to have.
I mean, Chris, even, you know,kind of crossing a little bit of
a bridge. Right? You guys havereally built that into your
private practice, pricecertainty, and and with clients
there. So, I mean, Scott, you'retalking about this as a market
as a or in the market as awhole. Right?
Like, what a beautiful thing.Right? Like, what? Even down to,
I mean, the total extreme. Whatif we knew that gas prices were
(08:25):
gonna stay the same every day?
Right? It might be good. Itmight be bad, but you can plan
for it. Right? So that's a hugething.
Right?
Scott Saunders (08:32):
Yeah. You know, John, that's great you brought
that up. Planning for it. Aninvestor, if you just think
about what we do as an investor,we take capital today, we part
with it, right, with theexpectation that in the future
we're going to get a return ofsome sort, whether that's
appreciation, dividends, income,but we're parted with capital
that we can use today to put itaside in the future to have it
(08:55):
grow and multiply in somefashion. And now we've got laws
that at least we know the rulesare fixed, and so it makes it
easier to make decisions.
It's very tough when you'represented with all these
different investment options tomake a decision when you don't
know exactly what's going tohappen and you're just
wondering. So I think themarketplace, as they begin to
(09:16):
digest this, I think this isgoing to be net positive for
people, knowing what the rulesare and then being able to start
to execute and then weigh thepros and cons of different
investments, you know, realestate or other investments,
knowing that. So that's a bigfactor. I call it the power of
certainty. And I think it'sgoing to be a little bit of a
relief, you know, not only totax preparers, but to investors,
(09:38):
to say, Okay, we know the rules.
Now we can operate in thissandbox knowing what the rules
are.
John Tripolsky (09:44):
Yeah. Talk about planning. Right? It's the same
with gas prices. Dumb analogy,but it's very related.
If you knew that it was the sameprice from here to Florida, and
I'm in Michigan, you know, youmight not have to swerve off the
road at at Buc ee's, and, youknow, Chris loves going there.
So, you know, trying to get thethe best deal on fuel. If
anybody's watching this, he'sshaking his head drastically.
Scott Saunders (10:02):
Alright. Alright. Alright. You had to
bring up Buc ee's. I'm gonnagive you a little tangent.
The Wall Street Journal's leadarticle this weekend was about
Buc ee's in my little town, palPalmer Lake, Colorado. If you
see it. So there's a Buc ee'strying to come in, and they want
to go in this beautiful ruralspot pine trees, beautiful views
next to open space, and thelocal community is not happy,
(10:25):
and they're fighting back. Now,I don't know who wins. I think
the big corporations have alittle bit more horsepower.
But, anyway, Buc ee's and mylittle town, Palmer Lake,
Colorado, was featured on theWall Street Journalist. Wow. Big
article about that.
Chris Picciurro, CPA (10:41):
Wow. I don't, yeah. I'm not gonna talk
about Buc ee's today because I'mgonna stay in a good mood. And,
couple things on Scott, can youtalk about, you know, I mean, as
as simple as possible, youmentioned carried interest in
that part of what o b three keptalive.
Scott Saunders (11:01):
It it is. Yeah. There there was talk. The
president said maybe we need tomodify that. And in the final
bill that was passed, thatstayed the same.
So that is a net positive forreal estate. People invest in
projects, and having a lower taxrate makes it so that they're
gonna invest more. If we had ahigher rate, that would have
(11:21):
dissuaded investment. So I thinkthat's a positive for
development and for real estate.
Chris Picciurro, CPA (11:28):
There's something else I that I think,
you know, sticking with realestate. You might not think that
this has an effect on realestate, but I actually think it
it allows people to potentiallyconsider ten thirty one
exchanges. And and what I wannatalk about also is opportunity
zones, which I I call that thecousin of a ten thirty one
exchange. But the change inpermanence to a state tax, I
(11:50):
think that's a numb probably thenumber one permanent like, I'll
give you an example. I know Johnlikes his gas example.
My example is, sir, you know, inour private CPA practice, we're
a membership based, and we'revery transparent with pricing.
You can you imagine going to arestaurant where there's no
prices on the menu? You mightorder something. You might eat
it. You might kind of enjoy it,and then it might be a price
(12:10):
less than you thought.
Wouldn't it have been nice toknow it was less while you're
eating the meal and thinking tomyself, I wonder how much is
this is gonna cost me? So so Ilike that certainty, but, yeah,
can you talk about the estatetax and what what you think
that's gonna play a role withten thirty one exchanges because
I feel like a lower estate taxdrives people to have a little
(12:32):
more liquidity and less lessamount put into real estate.
Scott Saunders (12:37):
Yeah. So the estate tax has now increased to
15,000,000 per taxpayer. So ifyou're a married couple, you're
talking a $30,000,000 cap.Anything above that then faces
estate tax. When you look at,you know, in terms of just doing
long term planning, that's apretty high threshold.
30,000,000 is a fair So amountof what it means is from an
(13:02):
exchange perspective, people cancontinue to exchange from one
asset to the next and the nextand continue to do that and
build up a larger portfolio andbe able to hand that off to
their heirs who get, again, asyou as everybody knows, a full
step up in basis to the fairmarket value at the time they
pass away. That's a lot. Youknow? I I think something like
(13:25):
99.7% of the of America is gonnabe beneath that threshold.
That's a really small groupthat's above 30,000,000.
So, again, that's a big benefit.That's a win for rural America,
for farmers and ranchers. It's awin for the average American
that maybe has a few assets, andthey want to go ahead and
(13:46):
continue building theirportfolio to pass on. So huge. I
think that's a great thing.
I'm really glad it came out thatway, and I think a lot of
taxpayers should be reallyfortunate. And again, for
planning, if you're beneaththose thresholds, it makes
planning a lot easier. You don'tneed to go through all of the
complicated mechanisms that youneed to do if you're a really
(14:07):
high net worth individual.There's always going to be a
little niche market for that,but the average American is
probably gonna do quite well atthat $30,000,000 threshold.
Chris Picciurro, CPA: Absolutely. And you think that (14:18):
undefined
like, I think a lot of bigmisconception when we look at
estate tax is that people assumethat if I you know, someone has
$5,000,000 worth of assets thatit's all liquid, and that could
be very not not the case at all.Right? It could be all in their
business, which isn't a lot ofyou know, maybe it's a lot of
IP. Maybe it's maybe they have alot of real estate that's
producing income, but it's notliquid.
(14:40):
So, you know, that's that'sthere's a big difference between
liquidity and your gross estate.There's no doubt
Scott Saunders (14:46):
about Hey. Absolutely. I've I've got a
friend of mine actually inTennessee, very successful
investor and he always just, assoon as he gets money, replows
it into another project. So hisnet worth is very solid, but his
liquidity is really not thatmuch because he keeps putting it
back in and growing hisinvestments. So I think that's
real common.
You know, even in rural America,you have people that are land
(15:08):
rich, but they're operatingtheir business with kind of
tight margins, but yet the valueof the land is worth a lot. But
they can't really capitalize onthat in a lot of cases.
Chris Picciurro, CPA (15:19):
Right. And you mentioned capital gains
remained unchanged, so we knowthat we have some lower capital
gain rates in Yep, the long we
Scott Saunders (15:28):
do. Yeah, we've got the lower rates. Those two
thresholds just continued on atthe 1520%. So again, those are
good. Now, in my world of tenthirty one on real estate, I
think people are better off, youknow, doing that.
And the other thing you kind ofalluded to, we've got the
opportunity zones. These cameabout. Senator Scott proposed
(15:48):
these, and they became part ofthe Tax Cuts and Jobs Act. And
the whole purpose of anopportunity zone was to take
capital, draw it into thesedistressed areas where they
needed some refurbishment,redevelopment, and to try and
improve them. And it was amassive success.
I forget the last data it was ahuge number many, many billions
(16:09):
went into these. So opportunityzones, which are kind of
related, they're a differentstrategy than ten thirty one,
they're broader. You can usethem for any capital gain. Sell
a business, sell crypto, sell anart collection, your gold,
whatever it is with massivegain, you can invest these
Opportunity Zones. So the waythey were before is they capped
(16:31):
out, they ended.
Now they're around inperpetuity, so we can invest in
them. They were expanded. It's agreat one, and as you know, I
don't know how much you've goneto do it on other broadcasts,
but any gain that you have afterthe tenth year is tax free, so
there's an incentive to investlong term in these communities.
(16:52):
What a benefit, literally a taxfree We
Chris Picciurro, CPA (16:56):
used Opportunity Zones significantly
in '9 in eighteen, nineteen,twenty, twenty one because they
were set to expire here in '26,I believe. We we didn't see as
much going on with qualifiedopportunity zone funds. I love
it because you can yeah. As younailed it, just invest all your
capital gain or a portion of it.And I wanna think about, like,
(17:17):
you know, we're all fromdifferent parts of the country.
Here in Nashville, The Gulch wasan area that was part of an have
you been to have you been to TheGulch in Nashville recently? You
see it's it's amazing. You know?Yeah. There's some pockets, but
that was an part of anopportunity zone fund.
I was just in Atlanta. You know,Buckhead's a nice area, but
there are some really roughparts there that have been
redeveloped. In Detroit,Midtown. Midtown looks fabulous
(17:39):
now in the right north ofDowntown Detroit. I know that's
where John's at.
So I think it's it's been aswoon for people because
ultimately, that money is stillstaying in the economy, and
they're still paying labor.Labor is paying payroll taxes.
You know, I I would beinterested. We'd have to look at
our friends from the taxfoundation. They break down the
(18:00):
economic impact on the jobgainer loss on all these
provisions.
We haven't hit that part yet.But that's that's phenomenal.
And the other thing, Scott, Idon't know if you've seen this.
You can you know, we always talkabout and and you meant, I know
you kindly mentioned before theshow our our quick quick tips,
quick reels. We have a whole onthe YouTube channel, a whole,
(18:21):
quick tips, playlist that taxstrategies like to play
together, like to be stacked.
So let's say you have a businessowner that's selling his
commercial building or hercommercial building and could do
a $10.31 exchange with that, butthen the stock in their company,
they could do a qualifiedopportunities on fund. So they
could do both. It's not one orthe other.
Scott Saunders (18:41):
Yeah. That's isn't that great that the tax
code has all these options? Soyou you've got all these tools
now at your disposal as aninvestor, and you're right. Use
a ten thirty one on your realproperty, defer the taxes,
reinvest, redeploy it assomething other. Use something
like an opportunity zone now forthe other gain with the business
and other things.
(19:02):
So honestly, we're probably, youknow, from an excitement
standpoint, we're at the mostexciting time to be a business
owner and investor. We've gotall these great tools now at our
disposal that we can use, and soI think it's really incumbent on
people. Get with their taxadvisers and find out all that's
in this and take advantage ofsome of these new provisions.
(19:23):
There's a lot going on.Absolutely.
Chris Picciurro, CPA (19:26):
Well, know there was a couple two things I
wanted to I mean, there's somany things, and and we're gonna
probably harass you to get somecontent from you down down the
road in the teaching textualYouTube channel. But two things
I wanna touch on before I forgetthe actually, maybe three
things. But the I just had ameeting with a private CPA firm
client. He's a resident of NewYork City. He's a doctor, and he
(19:50):
now will be able to deduct$40,000 of state and local
income tax instead of 10,000.
Salt I mean, so we you know,what do we see with the salt tax
deduction? That's not what youput on your eggs.
Scott Saunders (20:02):
Now salt's important. You know? I mean,
think about it. For your averageperson, if you're in a market,
and I know the Long Islandmarket pretty well, we've got an
office out there, those propertytaxes are enormous. If you were
capped at 10,000, now you go upto 40,000, and I believe it
adjusts up by 1% every year, soa little index, That means
(20:22):
you're going to have more takehome.
You're going to have more inyour pocket. That's good for
everything. It's good for allinvestments. It's good for real
estate. If you want to save upfor a down payment on your first
rental property, you're going tohave more cash to do it.
So I I think that was a a greatoutcome, and I know people in
those states that we're havingthose higher property taxes are
(20:43):
probably excited to finally seesome relief in that area. So
that'll be you know, that thatone's not permanent. I think it
sunsets out at 2,030, I believe.But, hey, there's a time window
now to take advantage of that,and it I'll tell you, lot of
people fought hard to bump thatup. So that's a great provision
for sure.
Yeah. Absolutely.
Chris Picciurro, CPA (21:06):
I know bonus depreciation got favorable
treatment, which is which soundsgood. Favorable. It's great.
It's being friendly. Right?
That's Let's talk
Scott Saunders (21:16):
a little bit about bonus.
Chris Picciurro, CPA (21:17):
So let's talk about because bonus
Scott Saunders (21:18):
to $10.31, those two concepts kind of link
together. So bonus depreciationnow, we get a 100% bonus
depreciation with no sunset.This is gonna be a game changer
on real estate. Commercial, Ithink it's gonna get things
moving. I think people are gonnatrade up.
For those who qualify, and, youknow, I'm sure you unpack that.
(21:39):
It's a little complicated on thedifferent types of income and
all that, but bonus depreciationis a great strategy to take
advantage of in the year ofacquisition. So we're going to
see that. Now the downside withbonus is that you've taken all
that depreciation up front, soif you sell it in a taxable
sale, you're now going to haveto recapture that. So lo and
(22:01):
behold, what do we have as asolution?
The ten thirty one exchange,right? So then ten thirty one
gives you a way on the back endwhen you're exiting the asset,
and now it's time to sell out ofit, do a ten thirty one exchange
and redeploy it. So really, thethe perfect strategy is to marry
those two concepts. Number one,take advantage of bonus when you
(22:21):
acquire the asset to the extentthat you can, hold it, and then
when you're now, it's time toexit out of that, take advantage
of a ten thirty one exchange anddefer your gain, and you can do
that indefinitely over and over.So combine those two concepts,
this is a big deal, and and I'lltell you, this affects the whole
real estate industry.
(22:42):
Commercial real estate hasbigger numbers, so certainly
it's going to have an impact onthat. REITs, you know, a lot of
entities will do that, socommercial. The residential
market, which I know well, andI'm a residential investor, you
can take advantage of thatbuying a little $203,100,000
dollars residential property.Same way as commercial, it's
just the zeros are a few less.And then the third one, which is
(23:06):
a great opportunity, is theshort term rentals.
Taking advantage of the shortterm rental loophole where you
only need over one hundred hoursand more than anybody else. So,
commercial market's affected,residential market, and short
term rentals, that's pretty muchthe whole real estate industry,
except for new construction.That's big component. Right. So
(23:28):
you've the bonus
Chris Picciurro, CPA: depreciation as your appetizer, (23:30):
undefined
and then you've got your $10.31as a marvelous dessert, and then
you could maybe we're all hungrytoday. I don't know. Maybe it's
me. But, you know, then you'vegot owning that property. Well,
as we wrap it wrap up, is thereare there any final nuggets?
I know there's some that youwanna leave us with. I know
there's some different credits.There's some new rules of
(23:51):
factory building.
Scott Saunders (23:54):
Let me give you two of them, Margaret. Two
separate ones. So I'll give themto you kind of in rapid fire.
One, I think this tax billreally rewarded work. So that's
important to remember.
First 25,000 of tips, nottaxable. Over time, up to
12,500. So that means there's areward for work, and the impact
(24:14):
is going to be twofold. Numberone, people can save up more for
their down payment. They'll havemore disposable income after tax
income.
Number two, if you're a renterand a tenant in those types of
things, you're going to havemore money. And so I think some
of these markets where you'vegot a lot of, let's say,
healthcare workers, firstresponders, people like that,
(24:34):
you might have some of them withmore money. A market like Las
Vegas might do very well becausethey've got all the casinos. So
that's one takeaway. The otherone on kind of the other side,
pulling it back to a macroperspective, in this bill were
all sorts of incentives toencourage real estate.
Condos, a condo development,they're going to get an
additional tax provision. Lowincome housing gets some
(24:57):
additional credits. The listgoes on and on, and you know,
there's something called the QBIdeduction, which is now
permanent, right, that 20%. Thataffects 2,000,000 real estate
partnerships. So overall, therewere many things that were
included in this bill that aregoing to be very positive for
real estate.
It's going to take a while forthat to trickle into the
economy. It may take a year ortwo or three. You mentioned
(25:19):
factories new factories get aspecial expensing component if
you're an owneruser. That's ahuge one to bring manufacturing
back to America, which brings innot only manufacturing, but it
brings in jobs and the incomeswith that. So, so many positives
there.
I'm really excited about the,you know, the next few years. I
(25:41):
think economically, this isgoing to be very, very, very
positive, and those people thattake advantage of these
provisions are going to win bigtime. So those are a few
takeaways.
John Tripolsky (25:51):
Awesome. Well, wait. Wait, Scott. That's
actually a great spot to evenwrap this one up because as
Chris, I believe, threatenedeverybody in a good way at the
beginning of this, we're gonnahave to have you back on as
always. It's it's this is great.
It's kinda like reverse fishing,but, like, we keep you know, you
keep trying to get away, and,nope, we're bringing you back
in. So good luck. And, yeah, Imean, this is this is a great
(26:12):
topic. Right? So we're wrappingthis up.
We did last week's. We did thisone more specific on real
estate. So as we dive into thisa little bit more, we, we keep
guys like this in our proverbialRolodex, like Scott, because
that way we can just pull themin, grab a grab a nugget from
it, and we can save everybodyelse the, you know, the paper
cuts by a thousand pages ofhaving to read the entire bill.
So I I look forward to it. And,Scott, you know, you're you're
(26:34):
always welcome back, man.
We love having you.
Chris Picciurro, CPA (26:36):
Thank you so much, and we appreciate it.
Scott Saunders (26:39):
Hey. It's always great busy with you guys. Always
fun to talk tax and economics,so thanks a bunch.
John Tripolsky (26:45):
Absolutely. Absolutely. And, again,
everybody, we'll dive into thismore along with other topics. Be
sure don't be lazy. As I saidbefore, show notes, if you're
watching, it's probably belowyou.
Depends on what screen. It mightbe off on the other side there.
Follow some of these links.Reach out to Scott. Reach out to
anybody from our team.
There is that curated YouTubeplaylist specific on the one
big, beautiful Bill Act. Socheck that out. Subscribe to the
(27:08):
YouTube channel. Tons ofcontent. See you back here again
next week on the teaching flowpodcast.
Different day. Different date.Same day of the week, completely
different topic. We'll seeeverybody soon. Bye now.
Disclaimer (27:26):
The content provided is for educational purposes
only. We encourage you to seekpersonalized investment advice
from your financialprofessional. For all tax and
legal advice, please consultyour CPA or attorney. Investment
advisory services are offeredthrough Cabin Advisors,
registered investment advisor.Securities are offered through
Cabin Securities, a registeredbroker dealer.
The content of this podcast doesnot constitute an offer of
(27:47):
securities. Offerings can onlybe made through an offering
memorandum, and you shouldcarefully examine the risk
factors and other informationcontained in the memorandum.
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