Joey Bluhm, MD FACS

An absolute crisis. Congress NEEDS to act. For months, I’ve been working night & day to try to bring Republicans and Democrats together to save college sports. If we fail to do so, it will be an utter tragedy. And it’s happening right before our eyes.

Young couple. Mid 30s. Mom & Dad each earn $250,000. Living in NYC. $500,000 total income. 37% federal tax rate. 13% New York + New York City rate. $250,000 in taxes every single year. How do they fix this fucking mess? They buy a $1.6M commercial real estate deal. $3.2M Property (8% Cap Rate) $2.4M Debt (7% Interest Rate) $800K Equity $260K NOI $10K Debt Service $90K Free Cash Flow But that’s not what matters. What matters is that on a $3.2M property, they can run a cost segregation analysis, and then take bonus depreciation, and then take ~$500,000 in depreciation in year 1 against their property. And then, their taxable income goes from $500,000 to $0. At 53% tax rate, they save $265,000 in income tax from owning this property. On top of the fact that it netted them $90,000 in free cash flow. And another $90,000 in property appreciation. $445,000 return on a $800,000 investment. 55% return on their money in year 1. If you’re a high earner, you *need* to own real estate. It’s not optional.