255: How to (Legally) Avoid Taxes by Investing in Real Estate w/Amanda Han

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 25 January 2023

⏱️ 70 minutes

🔗️ Recording | iTunes | RSS

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Summary

Everyone wants to know how the rich avoid taxes. You hear about it on the news, “billionaire pays zero dollars in taxes this year,” or “this real estate tycoon made millions but gets a tax refund!” This can seem like blatant tax abuse for those not in the investing game. Why do some people get to pay no taxes while others are stuck with a sky-high return just for working their W2 job? The answer lies in the assets you invest in. Real estate investing is one of the most tax-advantaged assets around. As a real estate investor, you can almost automatically count on lower income taxes while making more money. Don’t believe us? We brought Amanda Han, CPA to top investors, on the show to explain how investors avoid taxes while still striking it rich in real estate. Amanda understands the ins and outs of the tax code, and as a real estate investor, she benefits from knowing real estate write-offs and deductions better than the rest! On today’s show, Amanda will walk through the top real estate tax deductions and how rookie real estate investors can start paying less in taxes. She’ll also explain real estate professional status (REPS) and using it to lower your taxable income and how to find the perfect tax advisor for you and your properties. If you want to start using the same strategies that the wealthy use to avoid taxes, this is the episode to tune into! In This Episode We Cover The biggest real estate tax deductions and some that many investors often miss Depreciation explained and how this paper loss can help you keep your passive income The best tax strategies for investors trying to minimize their taxable W2 income How to find the right tax advisor and what they MUST know about real estate Tracking expenses and making it easy on yourself during tax time LLCs for rental properties and whether you even need one in the first place And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent Ashley's Instagram Tony's Instagram BiggerPockets Pro Real Estate Rookie Facebook Group Stessa Quickbooks BiggerPockets Bookstore REPStracker Google Sheets MileIQ Zapier Connect with Amanda: Amanda's BiggerPockets Profile Amanda's Instagram Amanda's Website Check the full show notes here: https://www.biggerpockets.com/blog/rookie-255 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is real estate rookie episode 255. So there is a point where, you know, we're looking at,
0:07.6	am I doing house hacking? Am I doing short term or long term or mobile home park?
0:12.0	Those different investments have different tax consequences and therefore different tax
0:17.3	strategies. So before meeting with your tax person for the first time, you do want to have a fairly
0:22.8	decent idea of what it is you want to do, right? What is my investment goal? How many rentals?
0:27.8	What states do I want to be investing in? Because those kind of things play a very important
0:32.2	factor for the starting point of what your plan is going to be on how to save on taxes.
0:37.2	My name is Ashley Care and I'm here with my co-host, Tony Robinson.
0:41.3	And welcome to the real estate rookie podcast where every week, twice a week, we bring you the
0:45.8	inspiration, motivation, and stories you need to hear to kickstart your investing journey. And I want
0:51.0	to start today's episode by shouting out someone by the username of Relatos and this person loved
0:56.7	us a five star review on Apple podcasts with the title of best boring banter ever with the
1:03.0	nextlamation mark. This person says, I love listening to you guys. You definitely care to the
1:07.2	rookie investor, making it easy to digest what you teach, asking your guests great questions for
1:12.7	both the novice and the pro. Keep up the boring banter and Ashley's laugh. So Ashley, you're getting
1:18.4	some love from the rookie audience about that wonderful laugh of yours. How does that make you feel?
1:22.8	I feel like somebody I knew wrote that because they're so used to you're crying from all the hurt
1:26.5	podcasts. People love it. People love it. There you go. And the boring banter. Well, thank you so
1:32.0	much. We appreciate that you guys so much. And if you guys haven't yet, please, you leave us
1:35.8	in an honest reading review on Apple podcasts. We've gotten so many in coming in over the last
1:39.6	couple of weeks here. It's been fantastic. But the more reviews we get, the more folks we can help
1:43.4	and help them folks is always the goal of the real estate rookie podcast. So I know this episode comes
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