The Multifamily Real Estate Experiment Podcast

MFREE 118 Trailer # 4 with Gian Pazzia: Are You Leaving Tax Credits on the Table?

Shelon Hutchinson Season 3 Episode 118

Aloha, It’s Shelon "Hutch" Hutchinson here! If you’re enjoying 'The Multifamily Real Estate Experiment' podcast, please like, comment, and share our episodes to help us reach and inspire more people. Thank you for your support!

Gian Pazzia breaks down what this means for investors buying property in 2025 and how it could impact your first-year write offs.

He also shares a major energy tax incentive developers tend to overlook. If you own or build large properties, this could be a six-figure savings.

Simple moves. Big impact.

#RealEstateTax #BonusDepreciation #EnergyIncentives

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Speaker 2:

Bonus depreciation. it's come and gone, a handful of times over the last 25 years, right? And, this time it, they actually made it permanent. And so if you're buying a building after January 20th of this year, 2025, you, yeah, you get to claim, a year one write off on anything that meets that bonus depreciation criteria, which is all those things in the SIG study we identified.

Speaker:

Yeah, that made too much sense, man. I like that. can you touch a little bit on, on tax saving as it applies to maybe energy, energy tax incentive, or maybe a multifamily developer or both?

Speaker 2:

Yeah, sure. So there's a handful of energy tax incentives in the code. One of'em. it's under code section 1 79, capital D. Okay. it's worth up to$5 per square foot in a deduction for the building if the building is energy efficient. And, and yeah, if you meet that criteria, let's say you have a hundred thousand square foot building. There's a half a million dollar deduction that's available. And so there's a certification process that the owners have to go through.