j

[Gabe Pluguez @Gabepluguez]

After 3 decades of listening to his doctors, my father ended up with:

• Cancer
• Diabetes
• Heart disease

After 3 years of listening to his son...

He lost 40lbs & became cancer free.

Here's 19 health secrets his doctors never told him:

1. Stop doing diets that have a name.

[Wolf of X @WolfofX]

This thread will show you who is the real boss.

1. A Truck flees from the pyroclastic flows spewing from the Mt.Pinatubo volcano in the Philippines, 1991.

[j @jfagen]

Cost Segregation Studies: An Unseen Advantage for Short-Term Rentals https://t.co/CpyxjBb2YR

[Kriss Berg, etc. @KrissBergTweets]

🧮 Why Car Washes Are Perfect for W2 Earners And Business Owners🧮

Every time I post a thread on car washes and bonus depreciation I get questions about how W2 earners can take losses from real estate-based businesses like car washes.

Let's clear this up right now with a quick thread.

In the mind of the tax man (which is not nec reality!) for our purposes there are two types of activities:

Passive: real estate (which is primarily owning and renting of buildings, land, storage etc.)

Active: W2 jobs, business ownership

For you to be able to take bonus depreciation against income, the BD has to come from the same bucket as the income.

So active income - active BD, passive income - passive BD.

Simple right? But what trips people up is where car washes land.

People think it's a real estate business, but it's actually a business with real estate. The IRS considers it active.

They call it a 'trader' business meaning you're trading money for goods and services. Real estate (in their mind but not in reality) is this passive thing where you just provide a building and collect rent (lolol).

So that means W2 earners, business owners, and anyone with active income can use bonus depreciation on car washes to nuke a huge chunk or all of their tax bill.

But ANY business that is asset heavy can do that too. Anything with equipment deemed to have a life of 15 years or less qualifies. So dumpsters, freezers, the list is really long.

It just so happens that car washes are almost perfect for this (NOTE: I'm not that smart, I fell into this by pure luck).

Why?

Because they have a unique mix of BD-elligible equipment and land. It's very bankable (meaning a bank loves to loan on it) because of the land and yet the building and equipment are a huge part of the value so the bonus depreciation % can be huge.

For some washes 80% of the value might be tied up in the building and equipment. Remember, you can only BD the equipment and building.

So if you had a $1M car wash, and 80% of the value is in the building/gear, this year you can take 80% of BD value, you would have a .8x$800k = $640k loss.

$640k paper only loss! For most of you that would wipe out your taxes for this year and probably a few years to come.

THAT'S why I am the Car Wash Guy. They are, for me, the perfect combination of simple businesses that have a real estate component for stability, but are active enough for MASSIVE tax benefits.

And (the best part): it only takes about 5-10 hours a week.

Capisce?

[j @jfagen]

Great thread

[j @jfagen]

Agree!

[Upstream Lacrosse @upstreamlax]

The Japan player who hopped on 24’s back and started throwing haymakers is teammate of the year. I’m going into the foxhole with that guy

[j @jfagen]

https://t.co/mn4UoGBB88 https://t.co/xDILU09POw

[Dana Carvey @danacarvey]

I can’t believe Fauci said this…

[j @jfagen]

Let’s go ND!

[Dead to the Core @grateful4dead]

Today In 1993: The Grateful Dead Live At The Oakland-Alameda County Coliseum (~);} https://t.co/mKK2CCgD3g @deadgirltoo

[Weiss Advice @YonahWeiss]

100% Bonus Depreciation...Farewell.

[j @jfagen]

Quixotic Fed Policy and the Real Estate Cycle | Beacon Economics https://t.co/oKoEzXo5MH via @BeaconEconomics

[j @jfagen]

Boho is THE best! https://t.co/RC5R9WP4TX

[j @jfagen]

Port of Rochester

[j @jfagen]

CRE market booming as Rochester gains national attention https://t.co/1uJHBXH2Mh via @RBJdaily

[j @jfagen]

https://t.co/LJkXvFGldu

[Mary Delaney @MuckdogMary]

@mcfw 3:23pm Update
https://t.co/qyZgnAiumA

[Jon Gordon @JonGordon11]

Today is the funeral for my coach Richie Moran. Here’s what I wrote about him that will make us better leaders if we follow his example. https://t.co/aUtUHDmYG5

[Jon Gordon @JonGordon11]

If you don’t believe there is a battle of good vs evil going on in the world you are not paying attention.