#145 - Bonus Depreciation & Cost Seg: The Tax Strategy Pilots Can’t Ignore with Gian Pazzia

What if the IRS already allows you to write off far more of your real estate, but no one ever showed you how?

In today’s episode, Tait Duryae sits down with Gian Pazzia to break down cost segregation in plain English and explain why it remains one of the most powerful tax strategies for real estate investors. Building on last week’s depreciation primer with Hall CPA, this episode covers how cost segregation works, when it makes sense, audit risk myths, and how pilots can apply it to everything from single-family rentals to commercial deals. You’ll also learn about a new, low-cost software option that makes cost seg accessible to smaller investors.

Gian Pazzia is a structural engineer and tax strategist with over 25 years of experience specializing in cost segregation studies. He is the founder of KBKG, one of the largest cost segregation firms in the country. Gian began his career at Arthur Andersen, working on large-scale commercial projects, and has since helped thousands of real estate investors legally accelerate depreciation and reduce tax liability through IRS-compliant strategies.

Show notes:

(0:00) Intro

(2:18) Why cost segregation matters

(5:46) Cost seg vs straight-line depreciation

(8:39) What assets qualify for write-offs

(10:18) IRS-approved depreciation methods

(14:54) Land value impact on tax benefits

(19:24) Cost seg for small properties

(25:32) Audit risk explained clearly

(34:04) Using cost seg on older properties

(37:40) DIY software walkthrough

(39:10) Outro

Connect with Gian:

• Website: https://www.kbkg.com/management/gian-pazzia 
• Cost Segregation Software: https://www.costsegregation.com/ 
• Promo Code: PILOTSCODE (10% off for first-time users)

Related Episode:

• #144 - Depreciation, Cost Segs, and the IRS Rules Pilots Miss with Brandon Hall

If you’re interested in participating, the latest institutional-quality self-storage portfolio is available for investment now at: https://turbinecap.investnext.com/portal/offerings/8449/houston-storage/ 

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*Legal Disclaimer*

The content of this podcast is provided solely for educational and informational purposes. The views and opinions expressed are those of the hosts, Tait Duryea and Ryan Gibson, and do not reflect those of any organization they are associated with, including Turbine Capital or Spartan Investment Group. The opinions of our guests are their own and should not be construed as financial advice. This podcast does not offer tax, legal, or investment advice. Listeners are advised to consult with their own legal or financial counsel and to conduct their own due diligence before making any financial decisions.