Julio Gonzalez The Most Interesting Man in Tax and National Tax Reform Expert, is the Founder and CEO and Chairman of Engineered Tax Services, Inc. (ETS). ETS is the country’s largest resource of tax credits, tax incentives and grants to the accounting community and the clients they serve.
Consistently named one of the Top 100 most influential people in Accounting by AccountingToday, Mr. Gonzalez expanded ETS by acquiring The Growth Partnership, The Rosenberg Survey and ABLE CRM in 2020 to establish the largest specialty tax and consultative firm to the CPA community nationwide.
In 2021, Mr. Gonzalez founded Rockerbox to bring the accounting industry best in class resources in employment retention credits and work opportunity training credits.
Episode Highlights Here:
Julio:
The best thing about real estate in this country is the IRS says that if you buy real estate, you get to expense it. So it is a tax benefit from the beginning, right? We get to write it off.
Pierce:
Or what’s the number one secret to? Just killing it in the real estate game and then saving a bunch of money on taxes?
Julio:
Yeah, I mean, we really started in 2001, with cost segregation, right. So cost segregation. Like, the best thing about real estate in this country is the IRS says that if you buy real estate, you get to expense it. So it is a tax benefit from the beginning, right? We get to write it off, typically over 27 to 40 years, but the IRS allows an engineer to come in and break the building into components. So now that we’re not writing off a building, we’re writing off mechanical systems, electrical systems, plumbing systems, and that once that’s done, typically, we can get up to 50% of that building that purchase expensed immediately. And so that preserves so much wealth, right? Because we create all these deductions, and then those deductions, offset income, and preserve the capital, wealth, the capital, gain wealth, and ultimately, we’re allowed to do invest in more buildings. And that’s how we see the billionaires in this country, right? They buy real estate, and they know how to defer tax, and they know how to minimize tax to create their wealth.
Pierce:
Yeah, absolutely. So you guys focus on the cost segue studies. And you’ve been doing it since the 80s. Have you guys expanded since then into other forms of tax deferral?
Julio:
Yeah, I mean, no doubt about it. Like, in 2006, the IRS passed this energy tax efficient bill. So now since 2006, and now it’s a permanent part of our tax code, we reward building owners for making buildings, you know, energy efficient. So we come in as licensed engineers, we measure the energy efficiency, whether it’s a retrofit, or whether it’s new build. And ultimately, if it does pass those energy benefits, it can be up to $5 a square foot and tax benefit for those clients on multifamily. It actually is a credit up to $5,000. So tax deduction on commercial buildings 5000 credit on multifamily. So those are big incentives, right, the government says we want to keep buildings healthy, we want to keep them energy friendly. And so we have those tax incentives, and that’s a big one for us as well, is making sure that most people are making the buildings energy efficient, just to keep their cost down. But to know that they get that reward, they get a better return on investment and the energy efficiency with these tax benefits. That’s tremendous. That’s one of the big ones. You know, certainly we have research and development design. So when we’re building buildings with innovation, right, we’re creating we’re building to a new code to new fire issues to new hurricane issues. That design where that’s innovative is also refundable as research and development tax credit. So, you know, that’s a big opportunity, too. We see all these new buildings, homes residential, commercial, being designed to all these new standards, higher standards, energy standards, you know, structure standards and all these things obviously, create a tax credit for those those buildings as well. Awesome.
Watch the episode here:
Important Links:
About Julio Gonzalez
Mr. Julio P. Gonzalez founded the Gonzalez Family Office and is the CEO and Founder of Engineered Tax Services, Inc. (ETS). ETS is the country’s largest specialty tax engineering firm which specializes in the preservation of wealth and United States’ job creation through IRS engineering-based services to include research and development manufacturing tax credit and grant studies, energy tax incentives studies, cost segregation deprecation studies for buildings, Opportunity Zone studies, real estate state and local incentive studies and alternative tax optimization studies.
Mr. Gonzalez started ETS in 2001 to bring specialized engineering tax studies to mainstream America, which have historically only available to the Fortune 500 and public companies through then the Big 8 National Accounting Firms. ETS has 26 offices nationally and is headquartered in West Palm Beach, Florida.
In addition to ETS, Mr. Gonzalez started several other family operational companies including his family office, Gonzalez Family Office (GFO), Calle Gato Ocho (CGO), and Envisioned Family Office (EFO) Gonzalez Family Office manages the Gonzalez family capital by investing primarily in real estate, private equity, and venture capital. CGO owns and operates direct real estate investments in multi-family housing and office/mixed-use real estate for the Gonzalez family.
Over 20 years later, ETS has been extremely successful in delivering these winning tax solutions to the American middle class, becoming the leading specialty tax practice in the United States. In 2020, ETS established the largest specialty tax and consultative firm to the CPA community nationwide by acquiring The Growth Partnership, a leading advisory group to the CPA community (which also produces The Rosenberg Survey, the benchmark survey of U.S. mid-sized accounting firms) and ABLE CRM, a company that customizes Customer Relationship Management systems for CPA firms so CPAs can make the best use of limited time.
In 2021, ETS acquired Inside Public Accounting, a widely respected research organization devoted to the CPA community, which produces the leading U.S. survey of top-tier accounting firms. In 2022, ETS embarked on yet another venture—the creation of a national accounting program for CPAs known as Engineered Advisory Accelerator. The Advisory Accelerator was created for CPAs who want to offer a full range of advisory services outside their personal expertise to their clients.
In 2023 ETS added Grant Services to its expansive suite of tax credit and incentive programs through the acquisition of Washington-based J.E. Salazar & Associates.
Mr. Gonzalez is in Washington D.C. weekly to work with the administration, Congress and Senate to advise on tax reform and is the go-to tax expert representing many national organizations and associations. He is a regular public speaker on a national level regarding tax reform and tax sophistication for wealth preservation.
- capitalgainstaxsolutions.com
- Capital Gains Tax Solutions Facebook
- Capital Gains Tax Solutions Twitter
- Capital Gains Tax Solutions Tiktok