WS1909 In And Outs of Becoming a Real Estate Professional | Kelsey Head

In today's episode , we continue our conversation with Kelsey Head, a seasoned CPA and partner at Head Tiler LLP. With 19 years of tax experience, Kelsey shared her insights on how real estate investors can navigate the complexities of tax benefits, particularly focusing on the coveted real estate professional status.Kelsey emphasized that becoming a real estate professional can significantly impact an investor's ability to deduct passive losses and offset income. However, she pointed out that there are stringent requirements and common misconceptions to be aware of. For instance, full-time W-2 employees are unlikely to qualify as real estate professionals since more than 50% of their activities must be in real estate. Kelsey also highlighted the importance of documenting hours meticulously to meet the IRS's criteria.We delved into strategies for restructuring employment to meet the qualifications, such as transitioning from W-2 to 1099 and reducing work hours. Kelsey also touched on the potential for spouses to qualify, thereby extending the benefits to both partners.Listeners were cautioned against common pitfalls and misinformation, such as the misconception that holding a real estate license or working in mortgage lending automatically qualifies one as a real estate professional.Kelsey's expertise was invaluable in shedding light on the nuances of achieving real estate professional status and the significant tax advantages it can offer. Her advice is a reminder of the importance of consulting with tax professionals to navigate the complex tax landscape in real estate investing.Remember to like, subscribe, and share the Real Estate Syndication Show with friends who are looking to deepen their understanding of real estate investment and tax strategies.After interviewing thousands of entrepreneurs, one truth is clear: business success means little if it costs your marriage, family, or faith.I'm now hosting the Courageous Men podcast for men who want to lead well at home and at work. I'm looking for five men to walk closely with who want to lead well at home and work.  Email me at [email protected] and tell me why you should be one of the five. whitneysewell.com  VISIT OUR WEBSITEhttps://lifebridgecapital.com/Here are ways you can work with us here at Life Bridge Capital:⚡️START INVESTING TODAY: If you think that real estate syndication may be right for you, contact us today to learn more about our current investment opportunities: https://lifebridgecapital.com/investwithlbc⚡️Watch on YouTube: https://www.youtube.com/@TheRealEstateSyndicationShow📝 JOIN THE DISCUSSIONhttps://www.facebook.com/groups/realestatesyndication➡️ FOLLOW UShttps://twitter.com/whitney_sewell https://www.instagram.com/whitneysewell/ https://www.linkedin.com/in/whitney-sewell/ ⭐ Be Our Guest!We are continuously working hard to help our listeners with their journey to real estate syndication. If you think you can add value in any way to our listeners who are in commercial real estate, then we’d love to have you over. Apply here: https://lifebridgecapital.com/join-our-podcast/