Episode 56. How To Pay $0 In Taxes Using Real Estate

Interested in Tax Strategy for your Business? Send us a message with your email address and we’ll help you get started!If you want to know how to pay $0 in taxes as a business owner, this video is for you. I sat down with Rod Khleif, a real estate investor, entrepreneur, and host of one of the largest real estate podcasts in the world (Lifetime Cash Flow), to break down exactly how he pays $0 in taxes using real estate, and how you can do the same thing.Rod has owned over 2,000 houses, owns thousands of apartment units, and is currently buying senior housing facilities in Texas. He also famously lost $50 million in the 2008 crash and built it all back. In this interview, we cover his comeback story, the mindset shift that took him from making $8,000 a year to over $100,000, and the exact tax strategies he uses to pay zero in taxes year after year.First, Rod explains why 90% of millionaires either made their money in real estate or invested in it, and the main reason is the tax benefits. We talk about how the tax code is literally written to encourage real estate ownership, and how full-time real estate investors can legally write off their entire income.Then I break down the real estate professional status and the 750 hour rule, what it actually means, and how business owners can qualify to write off active income against real estate losses. We also cover passive investing for business owners who don't have time to be an operator, and how passive losses from real estate can offset passive income.Next, Rod and I get into cost segregation and bonus depreciation, the two strategies that allow real estate investors to write off 60 to 70% of their investment in the first year instead of waiting 39 years for commercial property depreciation. I explain how this works for S corporation owners and high-income business owners who want to reduce their tax bill fast.We also cover the BRRRR method (Buy, Renovate, Refinance, Repeat) and how Rod uses it on apartment complexes and senior housing to pull money out tax-free for his investors. If you want to understand how real syndications work, how investors get their money back, and how the cash flow gets split between operators and limited partners, this part is for you.Finally, Rod talks about the opportunities in real estate right now, why properties are selling for 35% less than they did in 2022, and why senior housing and assisted living are some of the biggest opportunities for business owners looking to invest passively or become operators.𝗖𝗼𝗻𝗻𝗲𝗰𝘁 𝘄𝗶𝘁𝗵 𝗥𝗼𝗱 𝗞𝗵𝗹𝗲𝗶𝗳:🔗 https://rodslinks.com/🔗 https://rodkhleif.com/🆓  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.