Chad Brown is Hayden Crabtree’s CPA. He’s made Hayden money, saved him money and schooled him on the world of business.
Also, do you see a controller in his hands? No, because that blazer is not a game.
Now, as you probably know, Hayden’s got books and courses and seminars on real estate investing. He went from single family to multifamily to storage units, right?
Well, Chad’s been in his corner the entire time, helping him lower his tax bill.
At Chad’s firm, Brown & McCook, based outta Athens, Georgia, all they work with is business owners, entrepreneurs and investors.
And that’s it. They don’t screw around with basic W2 tax returns.
Chad’s passionate about their clientele because he is the client. He owns businesses and real estate, Airbnbs, as well as other passive income projects.
He’s so him he’s Himothy.
This is what he loves. Figuring out ways to work less and make more and brighten the future for him and his clients.
And with 25 years of experience, he can move the needle on taxes. He’s got secrets and loopholes and little-known deductions that can save you tens of thousands of dollars in checks to Uncle Sam.
Oftentimes it’s enough to cover the down payment on another property.
Sounds too good to be true, doesn’t it?
But here’s what Chad always tells people: Congress writes tax law; the IRS does not write tax code, they just enforce it.
And guess what Congress is made up of? A bunch of rich business owners and real estate investors. And they don’t like paying taxes either. So they build all these loopholes in.
There’s over a million words worth of tax code at this point. There’s hundreds of thousands of pages of bills that have tax legislation sprinkled throughout. So they sneak these things in.
And if you don’t research it, if you don’t educate yourself on all this fine print, how would you know about it? You wouldn’t.
And neither would your average accountant. They’re busy crunching numbers and filing paperwork and trying to get their next client.
Anyways.
There’s something called “cost segregation studies” which allow you to use accelerated depreciation.
Say you buy a commercial building for $1 million. Normally you’d write that off over 39 years.
But if you cost seg it, you’re able to break it down into components, and now you can write off hundreds of thousands of dollars in one year… and even more than that in the first 10 years.
So, for example:
- Flooring
- Cabinets
- Furniture
- Parking lots
- Electronics
Instead of “just one building” you’re writing off, you split it up into asset classes. And anything that has less than a 20-year life according to the tax code, you can use bonus depreciation on.
Accelerate it. Write it off in one year, three years, five years – whatever it is.
Sure, the law could change. They could do away with this provision. But even then it would be phased out over five years, giving you at least a half a decade to take advantage.
Remember, too, the old rich white guys who come up with this stuff have a vested interest in keeping it the same, if not making it even more favorable.
Okay, but how complicated and expensive are these so-called cost seg studies?
The short answer is not very… if you hire someone like Chad.
Because you have to have a license in both construction and tax law, which, hardly anyone not named Chad Brown does.
So yeah, they can do it for you, internally, at an affordable cost relative to the accelerated depreciation.
Depending on your situation, they have three price points, starting at $3,000 and topping out at $12,000.
Remote Cost Segregation is the name of the service.
If you’ve got rental properties or multifamily units or storage facilities like Hayden, sounds like a slam dunk decision.