I ❤ the way you teach! Specifically, you break the tax laws down for easy assimilation. You also provide overviews and takeaways of the video. Thanks Karlton!

Thank you so much! First real estate video I have seen that, not only explains the terms being thrown around but, the actual strategies and the rationale for them.

Hey bud, your videos are money!!!!!🎉🎉 Thank you for all the value. Tell your team to keep up the good work for me. You guys are killing this space. Can't wait for the end of the month challenge. Stay blessed.

Thank you Karlton!! I am truly fan of your work. keep it going!

Stellar presentation along with FACTS makes this a keeper!

Hey, this is an awesome video!!! I really appreciate your style of teaching. I’m going digging in your channel after I finish this series…

Absolutely amazing video! 🙌🏽 very thorough explanation of the different avenues to utilize this strategy. Fantastic job 👍🏽

Game changing knowledge for me! Now I have to watch all the other videos.

Thank you Karlton! I was beginning to look into selling one of my properties where I currently have long-term rentals. However, I am now reevaluating.

Thanks for the update Karlton🎉🎉

This is literally the video that made me follow you… 💪🏽 really appreciate all this information. I look forward to implementing all the strategic tools to my real estate venture. Thanks

thank you for this video. I’ve just been studying about this and hoping to have enough courage to start this type of invesment

Amazing content very detailed in explaining the loopholes for rentals.

I've seen a lot of different videos addressing these topics but yours is truly the best! Thank you sir you have a gift :)

Content is amazing love your channels!

Wow! I just came across your video, and I can say I learned so much about tax terminology and information. Thank you very much!

I love this video

Thank you Karlton!

Always spitting gems 💎🔥🤙🏼

Hi, you’re so right; setting up the rental investment right - from a tax angle - at the beginning is key. Just subed!

Bro great information, opened my eyes in soo many ways on why we need real estate

This was very informative video. Going to check out part 2

Your a wonderful teacher. Im all in

This is extremely valuable information

Great wealth of knowledge. Your explanation skills of this knowledge are on point. Bought an old home in MD for $235k, received 4 lots on one deed with their own tax base. I rebuilt the original home with $200k construction loan and $130k in credit cards. I lived on lot #2 until the rebuild was done and renovated lot #2 as well. Now, I rent lot #2 but it came as one of the gifted lots. I build a work space on the back side of the rebuild to work from. The other two lots are .5 per acre land. I am a self-employed person working from a dedicated space of my home. I did not know I could depreciate my work space (34.23 %) of home. 2021, rented a section of rebuild home (10%) to a friend after closing down my business for six months. trying to understand cost basis to apply depreciation to my home, business and how to file 3115 form for lot #2, I dropped depreciation 1.5 years I had no tenant??

Awesome explanation!!

Thanks for this info

Super knowledgeable on the info. Thank You for sharing

Karlton, as I understand you, since I am an early retiree who owns rental property, I can claim active rental losses on other income such as pension, social security and the sale of other real estate? Plus, I use my spouse, who is a lawyer to manage the property as well as pay her a monthly legal retainer. Am I going in the right direction? Thanks.

Great video Keep it up!!

One of your best, most informative and helpful videos keep them coming

great channel man. you have a new viewer. thanks for sharing your knowledge.

You are Awesome my friend. Period. Peace.

Great info, thank you

Hi..been watching your videos awhile now....very good contents and thanks for all the tips :) I want to ask about rental lost, if I am active w2 and have a long term rental. Can I use rental lost(cost seg, de-appreciation...etc.) to offset tax on my W2? I think I remember the max is 25k but not sure.

Thank you, you got a new subscriber 🙏

This video was AMAZING!

One of the best moves I ever made in my life. Filed taxes this year and was amazed. I’m hooked. Thank you KD. I looked at an in-depth older video of yours end of last year or beginning of this year about this same topic. And an older video on the tax savings on the different business structures. The laws of the universe and attraction are making my goals inevitable.

@hipzwhitetower7413

6 ай бұрын

does looking for a property count towards the 750 hours needed to offset taxes on your w2/1099 before buying the rental property??

Someone finally made this video. Fantastic work

Phenomenal stuff. Excited for part 2.

Great information Karlton. Thank you for sharing this with us al.

Just dropping comments for the algo King, I definitely need to cop one of your programs though. I’ve been a stock guy for the longest, but I’m ready to throw my hat in the real estate ring 💪🏾

Wow such great information. Thank you so much!

These videos are gold. Thanks mate!

The real KD!! What's good Coach

Also, thank you so much for all this information. Learning a lot from you.

Great info ❤

Awesome. Jammed-packed information. I actually stop all my multitasking to focus. Saved to research. Subscribed and liked

Great video

Karlton I wanted to ask if you do tax returns ? Thanks for all your good information.

@karltondennis

Жыл бұрын

Yes. Link in description to book a call

We do Airbnb(rent out 1 of our bedrooms. Been doing it for 2.5 yrs. and luv it). But what are all the tax write offs we can use when we do our taxes in Feb.?? Tytyty❤

Well explained! More of these tips please :)

Impressive presentation. Thank you for education!

did you ever make the video on creating a management company for dealing with our personal rentals? Any recommendations on finding a cpa that does Cost Segregation study?

Great job done bro.

Thank you for this!

You explained this so well ....

Such a golden information Thanks a lot Karlton

Thanks. Would love to see a video discussing how the sale of a property might allow carryover PALs to offset W2 income.

This video was amazing and so helpful. Stopped me from forming a lending business thinking I would be able to deduct expenses from my W2 income.. my question is: if I form a business that specializes in hard money lending and I earn passive income, can that business deduct expenses such as a vehicle that is used greater than 50% of the time for the business? Like traveling to different properties to assess if they are good investments to lend money for. Thanks!

So if you buy land and develop it that requires time and resources do build plus it’s only land value so you can claim depreciation on new property? Does this new property then have to be a short term rental property to offset other rental income. And put all properties under one company a managing company? What makes that business a managing company besides managing the rents/landlord duties?

Been studying the topic of using depreciation in real estate to offset taxes and I was thrown a curveball when I came across the term “real estate professional”. This video came right on time and as always, you do such a great job explaining. I do however, find it hard to believe that the “wealthy” are spending 750 hours a year in real estate or own majority of their real estate in short-term rentals… I could be wrong.

@karltondennis

Жыл бұрын

Glad I could help. Look forward to sharping your understanding during the Tax Free Wealth Event !

@wandapeguero7162

11 ай бұрын

​@@karltondennis​@karltondennisofficial I love love your content. Can I qualify as a real estate professional status if I'm real estate agent?

@hipzwhitetower7413

6 ай бұрын

@@karltondennis does looking for a property count towards the 750 hours needed to offset taxes on your w2/1099 before buying the rental property??

@cmargo10

4 ай бұрын

@@karltondennisI'm treasurer on a board of directors of a 400 plus townhome community. So I eat and breathe property management as fulfilling my duty as an almost full time volunteer. Would this qualify me as a real estate professional? Bcuz that would be very helpful in my tax life. Great video!!

Great videos very informative i love them videos thank you🎉🎉

One of the best explanations of this subject I’ve ever heard. Thanks!

You have a new subscriber, sir.

hi Karlton, I'm 20 years old. I interested in studying about taxes. I found your channel and it's very helpful (Thanks a lot}

Great video, great content, thank you!

Link to a video that connects the property management company while remaining within the guidelines of achieving the short term rental property depreciation realization? To rephrase, achieving the 100 hours materially participating but also pairing the property management company aspect?

This is an amazing video!! This is coming from a seasoned investor

This is a phenomenal video. It all finally makes send to me. I was perceiving this the wrong way.

Thank you for this video very helpful!! QUESTION! My tax professional is stating if I put my current rental property (which was my primary residence and I moved out of it to make it a rental) into an LLC and do a schedule C with him when filing I will be able to write off all of my depreciation and losses etc and deduct that from my W2? Is this correct or is he misinformed? He said the reason I cannot deduct it from my W2 currently is because it’s not in a LLC… just want others thoughts.

Thanks for the great video! It sounds like to meet the 100 hours material participation, the short term rental business has to be local. Then how shopping outside states work to meet that criteria? Thank you!

When you go onto these websites like Zillow, ECT. I can not find the entire tax history report. I only see the property tax and tax assessment.

It is 20-30% of the building value on homes and apartments but 100% on shopping centers or business commercial buildings.

Excellent work brother 👊 I’ve led multiple people through this same logic path. Blows their minds 🤯

Could you do a video on how to actually fill out a Massachusetts state income tax return?

@karltondennis

Жыл бұрын

My Tax software does all of the work for me. This isn’t worth your time in my opinion. Tax filing should be outsourced

Do you need to have a LLC to claim depreciation and get the tax benifits ? For example beginner with 1 rental property LLC fees to have a LLC takes up most your profit with only 1 rental so just regular home owners blanket insurance until I get 3-5 rental to put into a LLC sound correct ?

Amazing videos and I have always been a big fan. Wondering if you can do a video on using non profits for write offs and does it provide W2 benefits?

Thank you. This was extremely informative.

I wonder if this concept can also be used if you rent out your Second\Vacation homes partially for the year, Or is it only for Investment properties.

Good knowledge!

God bless you man! Your a gift 🎁, seriously thank you

@karlton Are you able to utilize the same scenario as a pertains to rental property in the Turo business utilizing rental vehicles as a ways and means to depreciate. Would love for you to do a video on that I had a leverage Turo kinda like Airbnb. (Goal: Tax Liability)

Never seen it explained any better than this 👍👍👍

Hey! Great video. Question - does renting out a bedroom count towards this? 15:25

Hello Karlton you. Ideos are very informative. What tax benefits do I have if I locked in a tenant for a 12 month lease? This is my first rental property I purchased.

Yes, but how many weeks a year does the property have to be rented for? What if it is a seasonal property?

OK so in a place with 92% building value you can potentially actually get more year 1 depreciation than the 20% down payment is that right? I have a high W2 with ~45% tax rate and my wife is doing RE agent classes so it seems like once she can qualify as an RE professional it would potentially be possible for me to spend X on RE and in the perfect case maybe get as much as 0.75X back from taxes that year if you do manage 30% first year depreciation on a 92% building value property.

Question: If I qualify as a RE professional & have a short-term rental that I use personally from time to time is there a limit on how many days I may use it for personal use and still take a passive loss via depreciation on that property?

Great information need to see part 2

Good info

Excellent video

I love this channel and appreciate all the great explanations. If I do not have a W2 and spend most of my time doing real estate deals. I have a few rental properties some of them I manage myself. Some are in other states with property managers. Will I be considered a real estate professional? As I do not have a W2 income. I can use my depreciation on that. But I guess most of my rental profit will be tax free as I will have depreciation plus other costs.

@tax-modern

6 ай бұрын

Yeah, if you don't have non-rental income to offset, then there wouldn't really be a reason to try to qualify for real estate professional status. But hours spent on your own rental properties do count towards the qualifying hours. Well, one catch is you probably can't count hours spent on short-term rentals (with an average stay of 7 days or less). Two tax court cases upheld the position that STR rentals aren't a qualified real estate activity to qualify for real estate professional status.

@hipzwhitetower7413

6 ай бұрын

@@tax-modern does looking for a property count towards the 750 hours needed to offset taxes on your w2/1099 before buying the rental property??

@tax-modern

6 ай бұрын

@@hipzwhitetower7413 Yes. Keep in mind 750 hours is the minimum number of hours, but also real estate work has to be your primary job, so you can't spend more hours on any other type of work.

@hipzwhitetower7413

6 ай бұрын

@@tax-modern I live with my soon to be wife, do we have to be married to qualify as she will be putting the 750hrs?

@tax-modern

6 ай бұрын

@@hipzwhitetower7413 If you want to be able to use her status to help reduce your taxable income, yes.

Hey Karlton, great videos. I just bought a multifamily home. If I do a short term rental and a long term rental in the same property, can I write off the depreciation as a short term rental?

To show time in the real estate operations. Can you just open a property management company, hire your own company to manage your business and be your own employee.

@robertwalker8716

Жыл бұрын

Lol ypu answered it in the video like a minute after I asked

Great knowledge than k you

If you log over 500 hours of material participation( between the 2 spouses) then are you okay for STR offsetting retirement money even if there’s a property management company for two houses? We have no other jobs and fly there and physically work on the properties, hire repair companies, shop and supply furnishings, meet multiple contractors there, etc. Also do the hours that you worked Jan 1 to May count as Materially Participation if you were making the two properties ready for putting it into service in May? Thanks, we appreciate you and you are a great educator!

Are you in Texas? Great video I’ll be watching more

So if I sell the home in 5 years. And they do bonus depreciation recapture, do they just take back all the money I saved on taxes? Wouldn't that just be a wash?

I found this so helpful until I got to the end. I started looking through trulia, Redfin and Zillow for CT and SC properties. When I search tax history, the land + additions is not broken out. Year, property taxes and assessment are the only columns I see. How would I find this information?

@tax-modern

6 ай бұрын

You can generally find that info on your county's tax assessor website. Google something like "[the county name] property tax search".