Accelerating Depreciation and Building Wealth with Jeff Hiatt_Ep 36

Episode 36: Accelerating Depreciation and Building Wealth with Jeff Hiatt What if a real estate deduction could help you build wealth today instead of arriving decades from now? Jeff Hiatt, known as the Depreciation Doctor, explains how cost segregation can accelerate allowable depreciation, reduce current taxable income, and free capital for an investor’s next opportunity. In this episode, Mike and Zach talk with Jeff about the strategy he has worked with since 1999. He explains why many eligible property owners never use cost segregation, how a study separates structural components from shorter-life assets, and why deductions may still be available even when a building has been owned for years. Jeff walks through the details investors need to understand, including residential versus commercial depreciation periods, recapture, 1031 exchanges, step-up in basis, and the circumstances that can make a study worthwhile. For his firm, properties above roughly $300,000 often begin producing a compelling benefit-to-cost ratio. The conversation also covers why specialized knowledge and a qualified physical site visit matter. Parking lots, drainage, landscaping, specialty wiring, HVAC, and other improvements contain layers of value that can be missed by a quick estimate, while unsupported virtual approaches may create serious audit risk. Jeff also shares his work with Swim With A Mission, a New Hampshire nonprofit that raises money for veterans and their families. Through events involving Navy SEALs, team building, and mental toughness, participants gain perspective on adversity while supporting those who served. ## You’ll Learn in This Episode: - Why many eligible property owners never use cost segregation - How cost segregation accelerates deductions without changing total depreciation - Which building components may qualify for shorter recovery periods - How prior-year deductions may be captured without amending returns - What happens to accelerated depreciation when a property is sold - How 1031 exchanges can defer gain and depreciation recapture - Why a property value near $300,000 can be a practical starting point - When cost segregation may not make sense for an investor - Why qualified professionals and physical site visits matter - How Swim With A Mission supports veterans and their families ## Quotes “Would you rather have a deduction today, or would you rather wait 39 years to take that deduction?” “Seventy percent of the people that could use cost seg don’t.” “That’s like an interest-free loan for X number of years.” “If we lose a contract or lose a client, it’s not a great day—but we didn’t lose a leg.” ## About Jeff Hiatt Jeff Hiatt is known as the Depreciation Doctor and has worked with cost segregation since 1999. His firm helps real estate owners identify faster depreciation opportunities that may reduce current taxable income and improve the capital available for future investments. Jeff entered the field after working with national franchise groups and learning how cost segregation could benefit clients who owned real estate. An early seminar for the Massachusetts Society of CPAs helped expand the practice from a handful of annual projects to hundreds. Today, Jeff’s team completes approximately 1,500 to 1,600 studies per year and has worked on nearly 28,000 properties. The firm conducts physical site visits, prepares fixed-fee studies, and helps clients and their CPAs understand how to implement the results in their tax software. Jeff also serves on the board of Swim With A Mission, which raises money for veterans and their families. Since its founding in 2017, the organization has raised approximately $18 million through events designed to build connection, perspective, teamwork, and resilience. Learn more at DepreciationDoctor.com, email [jdh@costsegstudies.com](mailto:jdh@costsegstudies.com), or support veterans through Swim With A Mission. ## Find REI Capital Guys For Investors & the Fund – Learn how the Fund works and book a call For Borrowers & Deals – Get funding and support for your next investment