If The Only Reason For An Investment Is Tax Savings, It Could Be A Bad Investment

Added: 2026-05-26

[00:00:00]The only reason to do something is a tax savings, it's probably not a good investment. I tell every client this. A lot of tax strategists [music] don't.

[00:00:06]Here's why. A lot of guys in my industry are pushing investments because they get a kickback or because their client is desperate to lower a tax bill [music] and they need to look like they're doing something. That's how people end up in conservation easements that get unwound by the IRS or syndications [music] that they can't get out of or equipment they don't need sitting in a warehouse depreciating. The investment has to make sense on its own [music] without the tax benefit. If it's a good investment and it generates accelerated depreciation, [music] that's where real wealth shows up. You're stacking economic upside on top of tax savings. But, if you're only buying it for the tax [music] break, you're going to lose the principal trying to save the tax. Don't let your tax strategist put you in something they wouldn't put their own money in.