In this episode, I cover two powerful real estate strategies that have allowed investors to save tens of thousands of dollars in taxes. The first strategy is achieving Real Estate Professional Status and the second is using the Short Term Rental Loophole. Bonus depreciation has supercharged the ability of these strategies to decrease the tax burden for W-2 and 1099 employees.
REPStracker App can be used to help document your hours for Real Estate Professional Status.
For more information on Real Estate Professional Status, refer to Look IRS Sec 469c(7). You can learn more at. https://www.irs.gov/publications/p925
For more information on the “short term rental loophole,” refer to IRS Reg. Section 1.469-1T(e)(3)(ii)(A).
There are two great books written on real estate and taxes
The Book on tax Strategies for the Savvy Real Estate investor by Amanda Han & Matthew MacFarland
The Book on Advanced Tax Strategies Vol 2. by Amanda Han & Matthew MacFarland
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