Tue, 2 February 2016
This episode is all about taxes, and how as a real estate investor you may be able to avoid paying them. Think of how much faster you can build your wealth if you use the 30% you would be giving to the IRS to re-invest in additional properties. The government wants us to do this. And, if you are a real estate professional who owns an investment property you should not be paying taxes. If you are paying taxes, you have the wrong CPA working for you.
Key Takeaways: [2:48] Defining tax drag [5:31] A stepped-up basis – aka no depreciation recapture for heirs [7:10] CRT – Charitable Remainder Trust [9:09] Life insurance policy as an investment or as asset protection [11:31] The magic of the Real Estate Professional status [18:50] Getting a retroactive Aggregation Election within the statute of limitations [21:40] Effectively self-managing a distant property [27:07] What if I have a real estate license? [29:54] ‘Married filing jointly’ is required for US taxes [31:24] Contact Diane for tax advice [31:40] Pay attention to the business structure you have for your properties [34:56] Investors need to be careful with LLCs and offshore corporations [35:44] Depreciation is the Holy Grail to tax write-offs [36:02] Qualifying for the IRS tax depreciation for owners of investment properties
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