Bonus Depreciation Uncle

A lot of entrepreneurs make great money each year but pay Uncle Sam 35-50% of it. As you can imagine, it takes a long time to build a large wealth snowball when 35-50% of your snow gets chopped off each year. Real estate helps with this. The best model that I’ve found is to: 1. Cashflow from entrepreneurship 2. Buy real estate as a "real estate professional" 3. Book losses through bonus depreciation 4. And end up with all cash and little to no tax. Your wealth snowball ends up much larger 10 years down the road when you earn and preserve your capital in a more tax efficient way.

Let’s break down how you can depreciate equipment to offset your taxes. Around 2010 I had a software company generating around $4 to $5 million a year. I was giving half of it to the government. Obama extended bonus depreciation to 100% on new equipment to stimulate the economy after the financial crisis. My cousin was in the oil patch and told me about frack tanks (Liquid storage tanks used in horizontal drilling and hydraulic fracturing). We bought $3M worth of frack tanks. 100 tanks at $30K each. My bank financed 100% of the acquisition. I could depreciate all of those tanks in year one through bonus depreciation. $3M of equipment losses against $3M of software income. Zero taxable income. I kept my $3M. Saved roughly $1.5 million a year in taxes. And on top of it, the tanks rented for $60 a day each. $200K a month in rental income was a great bonus. Equipment depreciation works. The difference between equipment and real estate is that real estate should appreciate and produce income over time. Equipment generally does not. Real estate is where the full strategy compounds across a lifetime.

Depreciation is one of the most powerful tools real estate investors have You buy a $800k property The IRS lets you depreciate the building over 27.5 years That's a paper loss every year that offsets your rental income You also can choose to do a cost seg study and bonus depreciate the property to accelerate losses upfront But... know that you only will be able to use those losses to offset income if you have REPS status or use the short term rental loophole AND materially participate in the property I have seen so many people buy a property and not know this and just get suspended passive losses

@FirstDoctor Number 1 is quietly the hardest and the most freeing, most of what we take personally was never about us at all. Master that and half your daily stress just evaporates. Simple habits, big compounding

3 healthy habits to learn 1. Don't take things personally. 2. Say a prayer before stepping out. 3. Drink water first thing in the morning. Every day.

@bluewmist Luck is just exposure' might be the truest line here, nothing finds you in the same chair, same routine, same five people. Get in more rooms and 'lucky' breaks start happening on schedule. Motion creates odds

The older you get, the more you realize luck is just exposure. If you sit in the same chair, same routine, talking to the same people, nothing new happens. You have to touch the world to win. Travel more. Talk to strangers. Try a new coffee spot. Post on social media. Start a side hustle. The world rewards motion. You don't find opportunity sitting still.

@BoomerDivvies So true, 'a lot of money' is a moving target that resets the moment you hit it. $100k feels like freedom until you have it, then it's the new baseline. The number outruns the satisfaction. Define 'enough' early

At different stages of life different amounts of money seem like a large amount. What do you consider a large amount of money? $100k? $5M? It really varies.

@Tim_Denning The lie that quietly wastes whole lives, 'less chaos' never arrives, just a different flavor of it. The people who win start messy and figure it out in motion. 'Someday' is just never with extra step

Every failed person in life I’ve ever met has one mindset: I will start in the future when there’s less chaos.

@benkellyone Not just you, three boring $100k businesses is $300k with diversification built in, while the unicorn is a lottery ticket that usually pays zero. Boring and redundant beats glamorous and fragile every time

I'd rather own 3 boring businesses making $100k each than chase one "unicorn" with a 90% chance of failure. Just me?

@PathOfMen_ This is the real prize people miss, the discipline rewires how you see yourself long before anyone else notices. The confidence comes from keeping promises to yourself, and that bleeds into everything else

the biggest thing nobody tells you about getting lean is that it changes how you see yourself before anyone else even notices. that internal shift is where everything else starts.

@OhDear_Friend The first step is the hardest and the most exposed, showing up before you're good takes more guts than staying comfortable. Anyone brave enough to start deserves a hand up, not a laugh. Respect the beginner

Never kick a man who's trying to elevate in life: - The skinny dude at the gym. - The fat guy on the treadmill. - The broke guy starting a side hustle. Help and encourage your fellow men. Making that first move takes big balls and deserves respect.

@phresh_arrow it's all about mindset

Normalize being more fit at 30+ than you were at 20.

@KevinSzabo14 Rich is a moment, wealthy is a system. Plenty of people get rich once and broke twice because they chased the status instead of building the habits. The flex isn't having it, it's never losing it.

Being rich is having money. Being wealthy is keeping it, growing it, and living free. Focus on long-term habits, not short-term status.

@omgsidewalks The 'engineered' part is what stings, wages flatlined while every essential quietly climbed. People didn't get worse with money, the math was rigged underneath them. $50 didn't shrink, the system shifted

Boomers: I fed a family of four on $50 a week Gen Z: $50 barely covers lunch This isn't inflation. It is engineered poverty.

@FluentInFinance Time = money

If your income doesn’t buy assets, your time will always buy income.

@jonbrooks This is the part the 'just lower rates' crowd misses, a cheaper mortgage doesn't help if you can't clear the down payment or qualify in the first place. It's not a rate problem, it's an income problem. Math doesn't budge

52 million Americans cannot afford a home over $200,000. Buyers aren't stubborn. They aren't waiting for the "perfect house." They're just broke. And no amount of Fed rate cuts fixes that math.

@MoneyQuotesX Love this energy!

The best revenge is becoming financially untouchable.

@Jacob_Naviaux The cheat code hiding in plain sight, the top comp already told you what sells, yet flippers keep guessing on finishes. Don't reinvent the design, reverse-engineer the winner. Copy what already worked.

If you want to see what not to do as a flipper, hop on Zillow and scroll through the active listings in a prime flip area. It's wild how people struggle with this so much. Find the top comp that sold (if that's the value you're going after) and copy the design and material quality. Not that difficult.

@DearS_o_n This exactly!

Rich men plan for three generations. Poor men plans for Saturday nights.

@b_co_co The contrast is the whole story, negative net worth at the bottom and $500 emergency funds, versus parents who had a house and a pension by 35. Same age, totally different hand. The gap isn't effort, it's era.

Under 35 in 2026? Fed SCF data: - Median net worth: $39,072 - 10th percentile net worth: –$15,000 - Avg emergency fund: $500 - Avg 401(k): $13,500 Your parents' net worth at 35: a house, a pension, 3 kids…

@jeremyct The solution to not having money is having money' is the trap you can't just try harder out of. Everything cheap is locked behind an upfront cost you can't cover. Being broke is a tax you pay to stay broke

My rent went up $300 a month. I told people I couldn’t afford it. They said just move. So I looked up what moving actually costs. First month’s rent. Security deposit. Application fee. Credit check fee. Moving truck. Utility deposits. Time off work to do all of it. That’s $4,000 minimum just to escape a rent increase. The solution to not having money is apparently having money. Poverty isn’t a mindset problem. It’s a locked door that charges you to find the key.