Depreciation is one of real estate’s most powerful tax advantages – and maybe its most misunderstood. Dustin and Adam break down what passive investors actually need to know about real estate depreciation, including bonus depreciation, cost segregation studies, and the tax benefits that flow through to syndication investors.

Bonus depreciation is back at 100%, and despite how aggressive it sounds, it’s actually the proper accounting method. But depreciation losses come with limitations that catch many high-earning W-2 investors off guard – particularly around how passive losses can and can't be used. The discussion also covers depreciation recapture, a sale expense that can quietly reduce returns if the syndication sponsor hasn’t accounted for it.

Learn the right questions to ask sponsors about tax benefits and recapture planning, understand when those K-1 losses actually help you, and why coordinating with your CPA is essential for making these strategies work within your specific tax situation.

Episode Release Notes & Resources:

• Episode v1.0 - Goal Setting for Freedom-First Investors: https://www.buzzsprout.com/admin/2432117/episodes/16376511

Watch episode on YouTube: https://www.youtube.com/watch?v=2l9wEjbyshE

See all Wealth Independence episodes at https://www.wealthindependencepod.com

Connect with Dustin:

• Big Spring Capital
• LinkedIn (/in/TheDustinBailey)
• Twitter/X (@TheDustinBailey)

Connect with Adam:

• Bidwell Capital
• LinkedIn (/in/AdamJPenn)

This show is for informational purposes only and is not financial, investment, legal, or tax advice, and does not constitute an offer to buy or sell securities. All investments carry risk, and investors should always conduct thorough due diligence and consult with qualified professionals before investing.

What happens after you sell a 14-store business with 90 employees? Ian Noble joins Adam and Dustin to share his journey from dry cleaning entrepreneur to passive real estate investor, revealing the emotional identity shift after exiting a business, and explaining how his business background shaped his approach to evaluating passive investment opportunities.

Dustin and Adam explore Ian's dual investment strategy: combining steady cash flow from private lending with equity upside through mobile home parks. Ian explains why interest rate concerns shouldn’t keep investors waiting, how passive investing delivered tax benefits after his exit, and the questions every investor should ask sponsors before writing a check.

Learn why Ian prioritizes cash flow over appreciation, how asking about sponsor failures reveals character, and his perspective on spreading investments between stocks and real estate market as returns normalize after years of exceptional gains.

Episode Release Notes & Resources:

• Free Passive Investing in Real Estate Cheat Sheet: https://go.runsteadyinvestments.com/wealth-independence-podcast
• Join Ian’s Passive Investor Mailing List: runsteadyinvestments.com/investor-club
• Ian’s LinkedIn: www.linkedin.com/in/iannoble1/
• Ian’s Instagram: @ian_invests

Watch episode on YouTube: https://www.youtube.com/watch?v=0EKh7WDCy2M

See all Wealth Independence episodes at https://www.wealthindependencepod.com

Connect with Dustin:

• Big Spring Capital
• LinkedIn (/in/TheDustinBailey)
• Twitter/X (@TheDustinBailey)

Connect with Adam:

• Bidwell Capital
• LinkedIn (/in/AdamJPenn)

This show is for informational purposes only and is not financial, investment, legal, or tax advice, and does not constitute an offer to buy or sell securities. All investments carry risk, and investors should always conduct thorough due diligence and consult with qualified professionals before investing.

Dustin and Adam tackle a fundamental question for business owners and high-earning professionals: when does it make sense to convert active income into passive investments rather than reinvesting in your business or career?

They explore why syndications often provide better risk-adjusted returns than building your own real estate portfolio, particularly for investors who lack the time or desire to manage properties directly.

The discussion covers the four ways real estate generates returns (appreciation, principal paydown, tax benefits, and cash flow) and why passive investments become increasingly tax-efficient as your portfolio grows. They examine the opportunity cost of learning new skill sets versus focusing on your highest-value activities, whether that’s growing a business or advancing a W-2 career. They also address when it makes sense to acquire properties directly versus investing passively in syndications, considering factors like economies of scale, team quality, and time investment required.

Watch episode on YouTube: https://www.youtube.com/watch?v=woqOUf3aUgc

See all Wealth Independence episodes at https://www.wealthindependencepod.com

Connect with Dustin:

• Big Spring Capital
• LinkedIn (/in/TheDustinBailey)
• Twitter/X (@TheDustinBailey)

Connect with Adam:

• Bidwell Capital
• LinkedIn (/in/AdamJPenn)

This show is for informational purposes only and is not financial, investment, legal, or tax advice, and does not constitute an offer to buy or sell securities. All investments carry risk, and investors should always conduct thorough due diligence and consult with qualified professionals before investing.