How Big Earners Use Real Estate to Reduce Taxes (Tax Loopholes Exposed)
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Күн бұрынBy 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)
@LYFEAccounting Жыл бұрын
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)
@Daddyrican2010 Жыл бұрын
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/
@Kensingtonhawk Жыл бұрын
Can you make a video on the employee retention credit?
@eriklim310 7 ай бұрын
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?
@madstarr2 Жыл бұрын
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.
@karenwhite445 Жыл бұрын
Depreciation #mileage #repairs #managementfees 😊
@EM-fz3hf Ай бұрын
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!
@SpontaneousPiano 7 ай бұрын
If I buy a residential property at the very end of the year, let's say December 15th, payed $1,500,000 for it, then I'd lower my taxable income for that first year by 54,545 since there wouldn't be any income received on that property yet?
@Akeem__ 5 ай бұрын
Hi I believe it’s prorated so you wouldn’t get the full 54k to offset your tax liability
@BornRiders 3 ай бұрын
For everyone’s knowledge, the calculation Sherman used is incorrect, it’s actually the price of the property minus the value of the land. No I’m not a CPA, but Sherman let’s get it right!$