Did you know the Tax Code Is Designed To Make You Rich, If You Know How To Use It? | Karlton Dennis
5/21/202643 min
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Most real estate investors are leaving massive tax savings on the table and they don't even know it. In this episode of The M.O.R.E. Show, Justin Colby sits down with tax strategist and real estate investor Karlton Dennis to break down how the tax code can legally reduce what you owe to near zero, why gas stations are one of the most overlooked investment vehicles for depreciation, and how cost segregation and bonus depreciation are the tools wealthy investors use that most people never hear about.
KEY TOPICS COVERED:
- Why gas stations depreciate in 15 years vs 27.5 for residential, and what that means for your tax bill
- Cost segregation and bonus depreciation explained for real estate investors
- How to invest as a limited partner and earn passive income without operational risk
- The real estate professional status strategy and why it changes everything
Entity structure, S-Corps, and how business owners can legally reduce taxes
- Estate planning: revocable vs irrevocable trusts and protecting wealth across generations
Key Moments:
00:00 — Why Carlton invested with Grant Cardone as a limited partner
01:12 — Introduction: Karlton Dennis, tax strategist and real estate investor
02:08 — What Carlton is investing in right now in 2026
02:52 — Why gas stations are a powerful tax strategy
03:10 — Cost segregation and bonus depreciation explained
07:00 — Real estate professional status and passive income
12:00 — S-Corps, entity structure, and tax reduction for business owners
20:00 — How to use real estate to offset W-2 income
30:00 — Estate planning: trusts, capital gains, and generational wealth
40:45 — Karlton's book: The Art of Legal Tax Avoidance
42:27 — How to connect with Karlton Dennis
Connect with Karlton Dennis:
Instagram: @Karltondennis
Book: The Art of Legal Tax Avoidance, Volume 1 — available on Amazon
About The M.O.R.E. Show:
The M.O.R.E. Show is hosted by Justin Colby and is dedicated to helping real estate professionals, investors, and entrepreneurs maximize opportunity in any market. New episodes every week.
Learn more: www.timeformore.com
Invest with Elevest Capital: www.elevestcapital.com
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Clips
Transcript preview
First 90 secondsCarlton Dennis· Guest0:00
Most people will invest with somebody else after they've built trust with him.
Justin Colby· Host0:03
Mm-hmm.
Carlton Dennis· Guest0:04
For me, I didn't know Grant Cardone. I had never met him before- Mm ... in my life. Never went to a 10X event. Nope. But did I download books? Yes. Was I listening to his podcast? Yes. Did I start getting some value out of his sales training? Yes. Was he talking about real estate? Yes. Was he bringing up other wealth teachers that I admired, like Robert Kiyosaki, and how he bragged about not paying taxes because he was using the tax code and mine? Yes, and I was an aspiring tax professional.
Justin Colby· Host0:25
Mm.
Carlton Dennis· Guest0:25
And to hear somebody that was advocating for the tax code whilst at the same time advocating for real estate, it was in perfect alignment with where I was in my training.
Justin Colby· Host0:33
Mm.
Carlton Dennis· Guest0:33
I was just learning about the tax code and how you can use real estate as an investment and as a tax write-off. And for me, I wanted to make mailbox money as soon as I could. I had that fixation of, "I'm gonna live off of passive income, so I might as well start right now." I just didn't know what went into actually earning passive income.
Justin Colby· Host0:48
Yeah.
Carlton Dennis· Guest0:48
And so because I did not know what actually went into earning passive income, I thought, "I might as well partner with somebody who's already done this. I'll go put my money with Grant Cardone as a limited partner, knowing that I won't take on any operational risk, and I get to benefit from the upside of him managing the property and him running the operation."
Justin Colby· Host1:02
[upbeat music] What is up? The Moore Show. Welcome back. And again, you will not want to miss this episode, 'cause my guest sitting right here. Now, as always, every episode is brought to you by the Moore Club. This club is for real estate investors. It teaches you all the opportunities that are in real estate, the opportunities that we're