In this video, we sit down with top real estate professionals to break down the ultimate tax benefits of real estate investing.
From property tax deductions to depreciation, we cover it all to help you understand how you can make the most out of your real estate investments.
Whether you’re a seasoned real estate investor or just starting out, this video is a must-watch for anyone looking to maximize their returns.
Don’t miss out on the opportunity to learn from the experts and take your real estate game to the next level.
Click the play button now to get started!
Transcript:
Chris Bounds 00:00
How many realtors in here and you realtors? Okay, all right, hey, we got we got one, anybody else full time in real estate or your spouse’s does not have a full time job. Anyone else? Okay. So there’s something called, and he can talk more about it, you can ask how it applies to you, there’s something called a real estate professional, it’s basically a check the box thing on the IRS for on your tax return, that gives you the greatest tax benefits that you could ever possibly have. It’s like the greatest gift the IRS gives.
And that’s to real estate investors, there’s certain things that need that you need to have to qualify and by need to have, I don’t mean a realtors license, you don’t need that. But there are certain things that you need to be doing to be be doing to qualify for it. But if you do, it gives you virtually unlimited losses, passive losses, and how that can relate to your income and other business income and all that that’s part where you definitely want a good CPA to, to iron that out for you.
But it’s a massive, massive benefit. So invest. And if you do it, right, especially since you raise your hand, you’re a realtor, you can end up taking advantage of some pretty good tax benefits.
Tarek Moussa 01:19
Maybe to that point, too, I think, think about this way. As a consumer inflation obviously hurts you quite a bit, right? But the best position to be in is as a business, right? Because ultimately, you take your increased costs as a business, and you just pass it as higher prices to the consumer, right, I think is pretty straightforward. Now the beauty of real estate is that the question that underlies this private message, depending on what business you’re in, is how sticky is that product, if it’s something people don’t really care about, well, then you probably can’t survive an increase in your prices, you aren’t gonna buy real estate people need it.
And COVID Short of anything is that the government is even willing to step in and guarantee that they’re going to pay for real estate, right? People work from home. Now, if they’re more dependent on this, when you buy, at least in the multifamily side of things, you’re buying a business, every single property is a separate business. So anytime our prices increase contractor, labor materials, whatever it is, we pass it on as higher rents it sucks in some capacity, depends how you look at it, but it’s also part of how business works in general. So that’s the best way to hedge in a big way. But to that point to the other beauty of real estate as well, is the fact that what we have over a lot of other businesses out there is that we have taxation benefits, right?
Depreciation, all that sort of stuff without fail. Every single year, q4 comes around, we start getting hit up by a lot of wealthy people saying, Hey, I made a lot of money this year. I don’t want to pay taxes on this. Guess what? You give me a million dollars, you can now offset that against your income. Tell me how you can save that much on your taxes. If you’re in the highest income bracket What 2030 40% In an incident right now, obviously with this year being the last year bonus depreciation, if you can get half of that in as appreciation in year one you roughly 40 to 60% Depending on the deal. But this is where the biggest inflation hedge really can come from ultimately having a way to pass on those expenses to other folks, the consumers at the end of the day.