How Big Earners Use Real Estate to Reduce Taxes (Tax Loopholes Exposed)
By a Trusted CPA: How to use real estate to avoid paying taxes...
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So yes, it is possible to buy real estate, show a taxable loss even though you made money, and use that loss to offset other income you have on your tax return.
And yes, all of this is 100% legal and is quite literally in the tax law.
And all you have to do is sit-back, relax, and stick around for a few minutes here and I will show you exactly how to do this.
Timestamps:
Tax Benefits of Real Estate: (0:00)
Step 1: Invest in Rental Real Estate: (2:37)
Types of Rental Real Estate: (3:08)
Step 2: Understanding Depreciation: (3:40)
A Non-Cash Expense?: (4:10)
How Depreciation Creates a Loss: (4:45)
Step 3: Accelerate Depreciation (6:30)
Cost Segregation Study: (7:20)
Example of Cost Seg Study: (8:38)
Step 4: Using Rental Losses to Offset Income: (10:25)
Passive Loss Rules: (10:45)
Exceptions and Loopholes: (11:15)
Qualify as Real Estate Professional: (11:33)
Income Exception: (12:32)
Short-Term Property Exception: (13:10)
Make Earned Income Passive?: (13:51)
Step 5: Buy More Rentals: (14:45)
Tax Plan?: (15:50)
Пікірлер: 12
If you want to work with Sherman directly to get a tax plan guaranteed to reduce your taxes, apply here: mycpacoach.com/contact/ (Sherman only has 2 client seats remaining for May)
Great content I will be calling you soon
@LYFEAccounting
Жыл бұрын
Thanks, Sherman has a couple of client seats left for May before he fills up. You can apply here: mycpacoach.com/contact/
Can you make a video on the employee retention credit?
was dividing the whole house cost by 27.5 years a simplified calculation b/c don't you have to split between land and building improvement first?
Depreciation #mileage #repairs #managementfees 😊
Great info, but what if you don't want to own and/or manage rental properties, short or long term. Can you gain any tax credits or deductions by investing in REITS or RE crowdfunding?
@LYFEAccounting
Жыл бұрын
REITS, hardly. RE crowdfunding, absolutely... if you have ownership in the fund.
I have a few questions. Can I take income I make from wholesaling & wholetailing real estate, & invest most of it into a new Ecommerce brand (other than what I pay myself), to pay little to no taxes? I know I'd be able to take that money & invest in properties to avoid taxes, but I'm not trying to do that quite yet & I'd rather invest that money into my brand. Is there a way to set that up or any loopholes that I'd get similar results? Let's say I make $600k from closing deals, pay myself $100k & put the rest into my Ecommerce brand. I still plan on buying properties later on, but my main focus is to keep wholesaling/wholetailing & launch my brand before, or by the end of the tax year. Is there a way to not have to pay taxes this way? Hopefully this makes sense. Thanks!
If I buy a residential property at the very end of the year, let's say December 15th, payed $1,500,000 for it, then I'd lower my taxable income for that first year by 54,545 since there wouldn't be any income received on that property yet?
@Akeem__
5 ай бұрын
Hi I believe it’s prorated so you wouldn’t get the full 54k to offset your tax liability
For everyone’s knowledge, the calculation Sherman used is incorrect, it’s actually the price of the property minus the value of the land. No I’m not a CPA, but Sherman let’s get it right!$