Episode 41. Real Estate Investing Tax Strategies

Interested in Tax Strategy for your Business? Send us a message with your email address and we’ll help you get started!Did your accountant tell you to "just buy real estate and do cost segregation" to save on taxes? Then they're giving you incomplete real estate tax advice. In this podcast, I explain why buying rental property and doing cost segregation won't actually save you money on taxes without the right real estate investment tax strategy.Here's what happens to business owners and entrepreneurs: You hit six figures in ordinary income, your accountant says buy real estate for tax benefits. So you purchase investment property, do cost segregation accelerated depreciation that lets you write off some of the purchase price through bonus depreciation. Sounds great, except those real estate losses are passive losses. Your business income is ordinary income. Passive activity losses can't offset ordinary income unless you qualify for real estate professional status, short term rental strategy, or self rental strategy. Your accountant probably didn't mention passive vs ordinary income rules.I break down how to convert passive losses to active losses through real estate professional tax status including 500 hours material participation test and how to qualify your spouse as real estate professional. I also cover short term rental tax strategy for properties that meet IRS definition like Airbnb, plus self rental tax requirements when renting to your own business. I explain why you should never buy real estate in S Corporation and how becoming a passive partner in deals helps accelerate real estate tax deductions when you start buying properties.Bonus depreciation 2025 is back making cost segregation depreciation and real estate depreciation more powerful for real estate investing tax benefits. No more falling for the "just buy real estate" lie when there's so much more to making rental property tax strategies and investment property tax deductions actually work for your situation.🆓  Download FREE PDF: 7 Write-Offs Every S-Corporation Business Owner MUST Know:   https://7taxwriteoffs.com/?el=podcast&htrafficsource=buzzsprout*Disclaimer This material & presentation content is for informational and educational purposes only. This material and presentation content is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your attorney, accountant, tax preparer, and/or other advisor regarding your specific situation or your client’s specific situation. The information and all accompanying material are for your use and convenience only.