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.
[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