Podcast Episode 125 Transcript

Episode 125: Tax Deductions For Energy Efficient Properties w/ Joseph Viery & Mark Stout

Guys. This week on the Prereal podcast we have a returning guest, Joe Viery and a new guest, Mark Stout, both with US Tax Advisors. If you're looking to save money, if you're looking to to drive and pull that extra dollar out of the portfolio, you have to listen to this episode. They go over in great detail the N179D program and the 45L program. These are tax credits and tax deductions that you are eligible for. If you own commercial real estate, if you own residential real estate and you're an investor, I can just about assure you that there is money that is available. The folks over at US Tax Advisors will do a free assessment. Please listen in. This is where good syndicators become great syndicators. Good operators become great operators. When you're turning over every stone and finding these places to drive value, joe and Mark lay out unbelievable programs that are available to you. We're talking hundreds and hundreds of thousands of dollars in tax deductions and tax credits. That top of mind jumped out at me in portfolios that we're involved in and I'm sure you'll get the same kind of value. Don't miss the episode this week. If you're looking to drive value and you're taking what you do very seriously, joe and Mark from US Tax Advisors, don't miss it. Guys, are you ready to bring your real estate game to the next level? My name is James Prendamano, I'm the CEO and founder of Prereal and over the past 25 years I've closed over a billion dollars in transactional real estate. Each week a meeting with outstanding investors, high performing individuals and visionaries operating in the real estate space. These are the people that are actually out there in the real estate game right now getting it done. This podcast aims at bringing anyone's game to the next level. This is the prereal podcast. Welcome everyone to the Prereal podcast. So there's a lot happening out there folks and we're always trying to deliver value for the audience and trying to find ways to drive profits in our portfolios and at the end of the day, do everything we can to bolster revenue, especially in a tough climate like we're in now. And a guest ahead on previously Joe Viery who was the CEO of US Tax Advisors Group, we had a wonderful chat on cost segregation and from that chat we touched on some tax credits and tax deductions that I thought the audience would enjoy learning about because it was something that I had no idea about. And again, it's another way to drive value for our portfolios. So also joining us today, we're going to have Mark Stout, he's an energy consultant with US tax Advisors. First, let me welcome you to the show. Joe. Welcome back Mark. Thanks for joining us today. Thanks for having us. Thanks, James. Our pleasure. So when we were talking last time, Joe, you had said let's, let's reconvene and bring Mark in to talk about N17 D and 45L. Which 45L is a tax credit. N179D is a tax deduction. And essentially there are dollars available, folks, that through some are low bar, fairly benign improvements that can be made. And some are a little bit more extensive. But there are credits that run from $2500 to $5,000 on the smaller residential stuff, and as high as 250 a foot if you're not using prevailing wage, and $5 a foot if you are using prevailing wage on commercial high rise. And now with some of these new changes, low rise. Is that a fair summary to get started, guys? Yes, it is. All right, so let's start with the 45 L, and let's see if we can highlight some things here to help folks pull a couple of extra bucks out of the portfolio. The 45L is the tax credit for residential. Now, does this apply to just new construction, or does this apply to renovations as well? It applies to renovations as well. So whether you're building new construction or you're renovating a building single family home or an apartment complex, it applies to both. Okay, so it goes all the way down to the single family home. Now, let's say that I have a home that I'm renting. Does it matter if it's an investment or if it's a primary residence, by the way? Does that matter? It has to be a primary residence, but you have to sell it or lease it. So you got to own the property and then either sell it or lease it. You can't own it, live in it, and take the credit. Okay? So you have to own it as a primary, which is a whole that really opens up the floodgates because most of the audience owns their home. So you own the home, and you're looking to sell it and or lease it. Do we know how soon you have to sell or lease it? From the time of improvement in the year you do the improvements, okay? It's when you should do it, but if you don't, you can always amend three years back and take the credit. So as a real estate broker, this becomes a pretty powerful tool that I certainly will speak to my team about educating our home sellers on. So what are the things that we need to do? Because remember, folks, when you're getting ready to sell the home, a proper professional should come in and should be talking about things that need to be done in order to drive value, and that doesn't start and stop with painting a wall or changing out a front door. And these are the types of things that we're trying to get in the weeds on, so we can deliver value for you guys at every turn. So let's say I have a client, Mark, and we're going to list the house, and where do we start. What are the things that we can use as benchmarks for things to be done in order to be eligible for this tax credit? Well, if you do it in 2022, you got to look at the 2006 IECC standard. And then you got to bring that house up by 50% above that standard. 10% of that 50 has to come from the envelope. So we're looking at insulation and lighting, that kind of thing. But it's a minimum of 10%. The wording is at least 10% of that 50% has to come from the envelope. The other 40% or whatever the difference is, comes from the mechanical and the hot water. So you must improve the 2006 the mechanical number. Mechanical in 2006 was a 13 seater and an 80% efficient furnace or a 13 seater air conditioner and an 8.0 heat pump. So you're going to have to do better than that in order to get any kind of credit. And then you're looking at installation windows, lighting and stuff like that, attic installation, that would help with improving that 10% because maybe you just do in the HVAC system and that gets you say, 25%. When you still got another 25 to go, you can, you can likely make up that 25% plus just working on the envelope. And those are a lot cheaper upgrades. Okay, so let's boil this down here. So oftentimes there are suggested improvements that we will make to homeowners and sometimes it's heating system, right? When you're selling a property and the engineer comes in and talks about putting a new heating system and that could be a daunting task for a buyer. So it's not unusual for us to make those recommendations, especially if we do a pre inspection, which we do offer as one of the packages on some of the homes. So we do a pre inspection. We note that we should make the investment in updating the system. There are metrics that we use as brokers that are easy to point to. If you put it in a new HVAC system, this is your anticipated return. Now, we can potentially layer a $2,500 tax credit on top of that. But in common language here, Mark, I want to explain to the audience. To hit that improvement benchmark that you cited over the 2006 IECC benchmark, are most new units efficient enough to hit that rating? Is it a special type of system that you have to buy? What does that look like? You're right, it does. Today the current installations that are being installed in these homes and apartments and whatnot are already high enough to meet the standards. So if you just meet your local building codes from the energy perspective, you're likely to already have been improved enough to meet the tax credits. And keep in mind, this is for 2018 through 2022, right? So that's when this 2006 standard, come January 1, 2023, the whole thing changes. And we're using a completely different standard to make the improvements. Okay, let me just pause you there. I apologize, Mark. I just want to again, make sure that the audience is getting it. So through some fairly benign changes, I would assume Led lighting and things along those lines will help you qualify for the 10% piece of this and the balance. If you're putting in new HVAC equipment, it sounds like the overwhelming majority of the time you're going to meet the standard anyway, folks. So if you're making those improvements and you're thinking of selling or leasing, let's make sure that we're speaking to consultants like Mark and Joe and we're taking advantage of this $2,500 credit, right? So that's 45 L and that's up until and including 2022. Now that's about to close out. Let's talk about 2023. What are the standards there? Standards there we're going to be looking at the national program requirements from Energy Star for the single family home. And that's going to vary depending on where your climate change is. So in climate zones, for example, is also using the 2009 IECC standards. So we've only gone from 2006 to 2009. And right now the current standard is 2018. So we're a lot better off just by doing what we're supposed to be doing in 2018 and making the improvements. Just run of the mill upgrades. Most of the mechanical contractors out there, they're already putting in 1415 serial air conditioners. They're already putting in 8.2 heat pumps or better or 8.5 in some cases, depending on what zone you're in. For example, zones 4567 and eight, I believe they have varying criteria. You can go down to 86% efficient oil boilers and 90% efficient gas boilers or 95% efficient furnaces. And now you're looking also at 8.5 or 9.25 based on your climate zone. And this is on the website. You can go to Energy Star website and pull down version 3.1 and see what zone you're in and determine what you need to make the upgrades on. But once you've done that, if you just already have, let's say you buy the house and you want to renovate it and it already has a 95% efficient furnace in it, you don't got to do anything. You've already got to the point where that HVAC mechanical side, it's done for you. The criteria is you need to meet the requirement. Doesn't mean you got to go and install up to. So if you can meet the requirements already just by buying the place before you even decided to renovate it, then you're good to go. And depending on where your climate zone is will depend on what you actually need to upgrade. So it made it a lot easier to qualify in 2023, right? At the same token, it raised the credit from $2000 to $2,500. Okay, so just to make sure I've got this again, and this is fairly technical stuff for those of us not in the know here, but what you're saying is as of 2023. Even if the unit is in already, and you didn't pay for that improvement. You just have to note that it's in and you're eligible for the credit. You don't have to make the investment. That's the requirement of the law that says you have to meet the requirement. Well, the home meets the requirement. Then it meets the requirement. Now, that has to be third party verified. Right? It's a trust me, but verify. So it has to be verified. But yeah, like I said, if you bought a house and the previous owner upgraded the HVAC system already, and it has a 95% or 90% efficient furniture, depending on your zone, and it's already got at least a 14 or 15 sear, maybe 16 sear, then yeah, you've met that requirement already. And now you're only looking at installation. Water heating, lighting, that kind of thing. Okay. It's just a list. You go down this list and say, do I have this? Do I have that? Yeah. I have this. Yeah. Do I have that? Yeah. And as long as you're meeting that requirement, you're getting that $2,500. Now, if you're not meeting it and you got to install it, then you want to hire a contractor that's paying prevailing wage. Now, the prevailing wage. We don't know what that is yet. It hasn't been decided. Some people think it's union wage. Because when we hear prevailing wage, first thought we have is union. That might be the case. We don't know yet. Sure he's out on that. It could be whatever the prevailing wage is for your area. So we don't know what they really mean by when they say prevailing wage. The other side is that if you do use whatever they consider prevailing wage then that 2500 jumps to 5000. And that is where you get your $5,000 tax credit. Okay? So if you don't have the system in and you're having it installed, and your contractor pays prevailing wage you're eligible for 5000 instead of $2,500. That's simple math, folks. If the delta for someone paying prevailing wage is less than the $2,500, you're making money on the deal here? Above and beyond the initial $2,500. So one piece that's missing for me, Mark. And I apologize because this is fairly new for me. In 2018 to 2022. We had to be 50% above the 2006 IECC benchmark. Now in 2023. That burns off. And as long as it's a 90% to 95% efficient furnace subject to where your zone is, that's the criteria? That's it correct? That's It. I got to go back because I misspoke on the 5000. It's $2,500 for prevailing wage. It's 5000 if you make your home zero energy ready. Meaning? It's ready to add solar. You don't have to add solar. You just got to get it ready to add solar and you got to pipe it in and get all the stuff ready. So if I come into your house, I'm an installer and I come over to install solar at your house. I got a space for the roof that's going to accommodate the solar. I've got the piping already put in place. I got to run the wires down to the meter. And as long as that stuff is installed, then your home is Zero Energy ready. Zero energy ready. And that's when it goes from 2500 to 5000. Okay, so I misspoke earlier. No, that's fine. This is all new stuff, and I know that the legislation is not even edified yet, and it's evolving. So I appreciate you guys coming on ahead of the curve here to try and give the audience that leg up, right. That's what we're about is driving value, and it's less than a precise thing, so we certainly understand that. Just to clarify this in my own mind here. So is there no credit available if you put the efficient furnace in by a non prevailing wage contractor, or is it a less benchmark than the 2500? There's just 2500. So in order to get the 2500, you got to use a prevailing wage. Okay. So what they've done here, folks, is they're trying to drive a higher wage through the discussion of energy efficiency in the environment, which is great and fine. So your contractor, if they are prevailing wage, then you get the $2,500. If you bought the home and the furnaces are already in, you get the $2,500. And if you are getting the property to the point of ready for solar, which again is the panel downstairs, the piping, the conduit, you don't have to actually do the install. That $2,500 tax credit becomes $5,000. Did I get this right? You did right. So the requirement for the $2,500 is really just got to be available to be certified as an Energy Star home. It has to be completed between January 1 of 2023 through December 31. 2032. That's ten years. Wow. It applies to all new builds and renovations. It follows the Energy Star new home, version 3.1 requirements. You must pay prevailing wage if your state has an Energy Star. Require national, require local requirement that supplements the national requirement. You got to use that one. California has one I know of. I think Florida has one. So there's a couple of states that do have these. And then beginning in 2025, the standard goes from version 3.1 to 3.2. It just changes. We don't know what 3.2 is going to entirely be yet, but that's going to be the requirements. And then again, if you do the zero net energy and you get it ready for Zero Energy Ready home, then you bump that up to $2,500. Look, I'm sorry, 5000. The overwhelming majority of the homes as they turn over typically every seven years. And with that, your HVAC equipment is probably going to run you somewhere between ten and twelve year practical lifespan. So chances are that you're going to have an asset that is going to be eligible for this credit. Here it is. $2,500. Up to $5,000. You have the metrics. Take advantage of it. We know there's 87,000 new hires in the IRS. Some are saying it's mostly agents, some are saying it's not. Either way, I think we can all agree that we want to be able to leverage every single dollar we can. And this is a really neat way that I've never heard of before, and I appreciate you guys taking the time. Let's jump now over to the N 179. We close out the residential. Now we're talking n 179. This is commercial and high rise. And from what I understand, come 2023, it will be commercial, high rise, and low rise residential. Is that right? Well, let's back up a little bit. Go back into the 45 L, the multifamily version, up to 2022. That $2,000 per tax credit. Same criteria as a single family home. If it's an apartment complex, the same criteria applies. Everything we talked about applies to apartments. What if there's multiple apartments? What if there's multiple units? Yeah. Exactly. Five or greater. Right. Do you get it for each one? Let's say you have a five Pam. Do you get it for each system? Each system. So if you had a 100 unit apartment complex, you're looking at $2,000 per unit or apartment unit. Yeah. Per door. Wow. Yeah. It's substantial. Now, that's up through 2022. Now, significantly, it changes in 2023. It drops to 500 per unit from 2000. But in order to get to 2500, which you can't do per door, you just need to use prevailing wage. That's it. That's the only criteria. Same criteria as a single family home. But if you use prevailing wage in an apartment complex, you're getting $2,500 per unit per door. That's for 45 L. Now, to just let me pause you. I'm sorry, I don't mean to speak over you, but I want to, again, make sure we're clear here. Do you get the benefit? Let's say you bought a multi family, and let's say it had 100 units in it and it had these energy efficient systems in it. Do you still qualify through the multifamily? Oh, wow. Because it's the same criteria, you're using the new construction building, which is following the similar code as a single family. And that's what you're looking at. So it could be that you're just meeting the criteria. From what I understand so far, you don't have to actually have it physically certified as an Energy Star. It just has to meet the requirements to be certified so that you can qualify for the tax credits. Well, this is hundreds of thousands of dollars, folks. For the multifamily investors out there, I know there's a lot of them that listen to this show. That's hundreds of thousands of dollars per project. What a windfall. Yeah. And on top of that, same criteria, with the zero energy ready if you make the apartment, each apartment, zero energy ready, meaning it's available to be piped for solar or the least of buildings. If you got one building that's got multiple units, and that building is piped for solar. Now, those units get $5,000 per unit. And it's not that difficult to be zero energy ready. I mean, it's not that expensive to to just make it zero energy ready. That's the great thing about this. It's not like you have to spend $10,000 to make it zero energy ready. You can do it for hundreds of dollars. On top of that, they're giving you tax rebates and credits for your heat pumps, for your Led lighting, for water heating. So you got not only are you getting the 2500 of the $5,000 tax credit, you're getting additional tax credit for the equipment you're putting in. So if your person, if your HVAC system is costing you twelve grand and you're getting maybe a $4,000 tax credit, now, you're looking at that twelve grand dropping down to eight. So your cost is substantial, and then you get the tax credit. And then not to leave undone is your disposition. You can take the equipment you're throwing away replacing that's got a dollar value. You've only owned it for five years or whatever. It's a 27 year property. And now you can readjust and capture some of the deductions on the undeppreciated portion of that asset. So there's another deduction. This thing could pay for itself without you. You're spending the money, but you're getting a majority of it back in the form of the disposition, the tax credits, the tax deductions and so forth prior to the mix with the 179 D and the 45 L. Right. Now, today, a high rise is considered commercial and falls under 41 79 D. They do not get the tax credits. The $2,000 tax credits. So four stories or above, they don't qualify. But in January 1, 2020, 323 low rise and high rise benefit from the 45 L. So they do get the 25 and the 5000, and then you have the 179D that is strictly for commercial now, and that goes from a buck 88 to 250. And we'll talk about that in a minute. Wow. So as an investor in this this product type, our heating plants are always a significant source of expense. And to be able to capture the the tax credit and to be able to capture the credits against the individual equipment, you're not only getting essentially ten years of practical life out of your equipment for almost zero cost, you get the tax credit on top of it. This is an amazing program. Do you all offer a service where if somebody had questions or wanted to get their system certified, do you all offer that service in your company? Yes. One thing we do is we do the no cost analysis up front to let you know whether it looks like you're going to qualify or not. And Mark will look at a form that we have an intake form. You list what you've done and send it back to us. We'll look at it and we'll get back to you and let you know whether we think you're going to qualify or not. And then we can go from there. Wow. Right. That's no cost. We don't charge for that. And just direct folks to the website to fill out this form or how do folks do that? Just go to ustagei.com. USTAGI. All right, so let's make sure that this is down in the show notes, folks, because this is great stuff. Now let's jump to N 179 D. Define commercial. What commercial projects qualify? Well, for now, it's any commercial property that you would consider. So that could be your local 711, to your office complex, to your hospital, to warehouses, industrial complexes, strip malls, anything commercial and high rise. Anything is above four stories above grade and higher is considered a high rise residential that is also qualifying as a commercial property for 179 D. The criteria there is basically you must get 50% better efficient than the 90.1 Azure 90.1 version 2007. That's up through 2022. So at the end of 2022 and before you can meet that 50% improvement, and if you do, it gives you a dollar 88. It's adjusted for inflation. Joe, we have a center right now that was acquired. We just spent 300,000 in change, had 16 or 17 pieces of equipment up there. Most of it had to be replaced. Is it too late to do this? How do how do I get engaged here? We literally are in the process of doing this right now. We spent over a quarter million bucks, and I sure as heck would like to be able to recapture some of that. So what would I do in the moment? Yeah, right now, what you need oh, go ahead, Mark. Oh, go ahead. I'll let you go. No, I was going to say the first step would just be to fill out one of the intake forms. If it's a commercial building, we have a separate intake form. Though if you're talking about the 179 D. Yeah, it's a retail complex. It's six acre parcel with 55,000 building. And then what we'll do is Mark will take a look at the input sheet, and then we'll get back to you and we'll tell you, okay, this is how much you're looking at as far as the fee goes. This is what you're going to be looking at as far as the estimated tax benefit, again, this is not the tax credits, but the actual tax expense. And then you make a decision. I would like to say that for the disposition part of it, what Mark was talking about, we get involved when we do cost SEG on the disposition end of it, because what we're doing is we're identifying for you in our reports every item component of the building. We put down the remaining basis and the value as per the day we do the study. So it's very helpful for us to get in there before you start throwing stuff away, because we're going to have to document what you threw away, either by pictures, by receipts, by CG notes, your notes, some of these notes. So it makes it a lot easier if we do it before you start ripping stuff out. Got it. Exactly. How does this impact if it's a 1031 exchange? Doesn't matter. It's whoever owns the property at the time that the improvements are made and in what year you make the improvements. So it doesn't matter how you buy it. And this would be a tax deduction now? Correct. And you have to sell it within the year to realize that you do not have to sell this one. This one improvements. Right. This one you can just keep. It could be your own commercial property. You bought it yesterday, you renovated it tomorrow, and then after you take the deduction. So on a 55,000 square foot building, that's dollar 88 is $103,000 tax deduction plus or minus. Yeah, it's broken down into three components. You have 25%, that 50% is broken down into 25% in the lighting, which is really easy to get. You throw Led, and then you've more than got the 25%. 15% comes from the HVAC, which is going above in 2006. The minimum an HVAC system could be with 13 Sears. So at a minimum, you get in a 14 or 15 sear air conditioning, you're making your 15%, and then the envelope has to come in at 10%. So that could be lighting, that could be not lighting, but it could be insulation, windows, doors, air ceiling, roofing, that kind of thing. Pretty easy to get to capture the majority of these when you're making the renovations. And you don't have to get all three. You can cherry pick, you can get just lighting. Get just a mechanical and it's broken down into currently it's a dollar 88, so it's $0.63 for lighting, $0.63 for mechanical, and $0.63 for lighting. And it's per square foot. So at 55,000, if all you did was a lighting, it would be $0.63 times 55,000. Mark, you said lighting twice. It's lighting. Yeah, I know it's lighting, HVAC and envelope. I made the mistake of saying lighting was part of your envelope, but it's not. Lighting is part of the envelope, but it's separate separately. So you've got insulation in there sitting your roofing. A lot of people put a new roof on or redo the roof, so that air seals, which is very critical, and that covers the mechanical side or the envelope side of it. That adds up to your 50%. Yeah. Let me just make sure I understand this. You don't have to do all three. You can do this is free money here.

Wow. Yeah. Actually, you could just throw lighting in there, new lighting, and get 25%. Upgrade your HVAC system. Another sixty three cents per square foot. If you don't do anything else. It's abduct 20. Right. Duct 26 /sqft, that's the deduction. And then that's it your requirement. There is your Azure standard, 90.1 version 2007, beginning with the January 1. That 50% drops to 25%. You have to meet the current 90.1 standard, which I believe is 19 or 2018. It might be 2016 or 16, but I got to check on that. They don't know it's whatever the current standard is. And there's two different current standards also. It's the current standard, the 90.14 years prior to the in service date of the building. So whenever you put that building into service and you made the upgrades, then you go back four years. Whatever standard was applied, then that's the standard you're comparing to. All right, so folks, the long and short of this year is that there is significant, very real money available not only for an individual home. As you get the scale here is where the numbers get really significant. If you have multifamily, if you have commercial real estate, many, many of you in the audience do reach out to professionals like Joe and Mark here, because there is hundreds of thousands as they're rattling these things off. I'm making the mental notes, and I hope you all are doing the same at home of the properties that would be eligible. And Joe, we just have to reach out through your website and you guys will provide a no cost assessment. Yes? All right, so what do we have to lose here, folks? Joe, I need that website, please. One more time. Usagi.com ustaagi.com. Joe, Mark, super helpful, super valuable information here. We're all looking in every nook and cranny today to try and drive value as the market shifts. Literally feels like by the minute. This is really great stuff. Anything else you wanted to add before we close out? One thing I wanted to just make sure that you're crystal clear on, I thought I heard you say that you thought that the buildings for the 45 L needed to be sold recently. That's not true. No, I thought that James said that the buildings that he interpreted what you said as the buildings need to be sold or leased within the one year. Within the one year? Yeah. For 45 value, when you make the improvement, you either have to sell or lease the building in the year you do the upgrades. So in 2022, if you did the upgrades in 2022, you'd have to at least by the end of the year, sell or lease that building in order to qualify for the credits. For 179 D, you do not 170, you do not have to sell it. But 45 L, you do. Right? Yeah, but that is, of course what every investor is doing. They're either going to sell the building or they're going to rent the building. So if you're renting the building then you're going to qualify. So there's really no emphasis put on that. Also, what's really important is that if there's any in your audience that are flippers when we do cost segregation cost segregation, I will tell a flipper probably is not going to work because of the depreciation recapture. But energy studies, that has no bearing. You can get the tax credits even if you sell the property, and you can get the dispositions. The dispositions work. We talk about this offline, but you can get the dispositions as well as long as the rebates. So there's local rebates. A lot of them got utility rebates you can pick up on top of the tax credits. And then there's tax credits for the new heat pumps and new lighting and that kind of thing. So there's a lot of stuff you could upgrade for that's got dollar values associated with it. So even flippers, flippers are great for 45 L. They should not be ignoring the 45 L if they're flipping homes. And this is it, folks. These are the things that make good Syndicators great and good GPS great. These are the places that you need to be looking. These are the things that you need to do to distinguish yourself, your portfolio, and to optimize the bottom line. Free money. There is no excuse to not pursue this. Absolutely no excuse. I can't even tell you how many projects have come to mind as we're sitting here going through it that we'll be in touch on. This is stuff that in a market like this can make all the difference in the world. So I encourage everybody. One of the common themes that we have found as we talk to syndicators and investors over the years is everybody is always looking on how are we going to raise rents and how are we going to add more units and how are we going to create additional revenue externally. Tighten up your ship internally. That is the easiest way, the quickest way, and the way you have most control to drive additional revenue. The difference between an inexperienced operator and an experienced operator, a good operator and an outstanding operator, this is where you win. Right here, folks. Joe, Mark, I cannot thank you enough for the time. This was even better than I thought it was going to be. I really appreciate it. Thank you guys so much. Let me add one thing before we quit here. You can go back three years and amend your returns and pick up stuff that you've done in prior years based on your last time you filed tax return. And you do that also with 179 D. Now with 179 D, you can go all the way back to 2005 and pick up every upgrade you've done going forward and roll that forward to today's tax return and take the deduction. So if you've upgraded the properties in 2021 and 2019 and 2017 and 2010 and you didn't do any of these tax deductions. You can go back to those and call them up and do an amendment. It's not you're not amending the return. You're just taking the it's a change of accounting and you can capture all those deductions and roll them into your current tax return. You're basically telling the IRS, hey, look, I forgot to take these deductions. I'm taking them now. And here it is. The longer we stay on, the more the better and better this program is getting. I don't know if I'm going to let you all go here. So just to summarize here again, n 179 D, you can go back to 2005 and the 45 L, you can go back three years. And now it literally is every property. We've all made improvements, pretty much. We've all done things over the years. It's a no cost assessment. And this is why we have partners and friends like we do over here at US. Tax Advisors. Joe, Mark, thank you so much. Amazing value. We'll be getting to work on it and I hope the audience will as well. As always, everybody out there, please stay safe. Thank you, guys. This is great. This was really tremendous. Yeah, man, this was unbelievable. And actually, I stepped out of an investor meeting with one of my partners. I'm going to go downstairs and talk to him about this straight away. Like, we'll be in touch for sure. This was really great. Appreciate you guys. I appreciate you guys. Absolutely. Stay safe, guys. Are you ready to bring your real estate game to the next level? My name is James Prendamano. I'm the CEO and founder of prereal. Over the past 20, 25 years, I've closed over a billion dollars in transactional real estate. Each week, a meeting with outstanding investors, high performing individuals, and visionaries operating in the real estate space. These are the people that are actually out there in the real estate game right now getting it done. This podcast aims at bringing anyone's game to the next level. This is the prereal podcast.