- Select the best entity for your real estate investments – the proper entity will ensure asset protection and minimize exposure to taxes.
- Become a Real Estate Professional – by meeting certain tests losses from rental real estate will be fully deductible against ordinary income without any passive activity limitations.
- Maximize your deductions and keep good records – all ordinary and necessary expenses incurred to carry out your business is deductible.
- Time the depreciation deduction according to your needs – use accelerated depreciation, Section 179 deduction and cost segregation studies to maximize the tax benefit of depreciation.
- Defer Taxes with a Like-kind Exchange (1031), installment sale or investment in an Opportunity Zone – defer or completely postpone capital gains taxes using the right strategy.
- Use your retirement plan for investing – convert your 401(k) or traditional IRA to a Self-Directed IRA and invest in real estate.
- Take advantage of long-term capital gains rates – avoid becoming a “dealer” and hold properties that you flip for more than one year to benefit from favorable long-term capital gains rates.
- Play the moving game – live in a property for two years as your principal residence and exclude $250,000 of capital gains and up to $500,000 for a married couple filing a joint return.
- Use the 20% pass-through deduction – small business owners can deduct the lesser of the combined qualified business income or 20% of the taxable income.
- Hire a Tax Professional who specialize in real estate – we efficiently handle complex financial matters and strategic tax planning to help you achieve your goals.