EP250: What the GOP Tax Plan Means for Real Estate Investors

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This episode of Investing in Real Estate is sponsored by Fund&Grow. Fund&Grow helps investors access business lines of credit with 0% interest. For $500 off your startup fee, visit morrisinvest.com/funding.

The most recent tax plan is the biggest tax overhaul in over 30 years. This plan aims to enact tax cuts for both corporations and investors. It’s important to overview what this plan means for you, and how to best prepare for tax season as a real estate investor.

On this episode, Natali and I are discussing some main points from the newest tax bill. We’ll discuss the intention of the tax code, and how you can best play by the rules moving forward. You’ll learn about smart investing, pass through entities, and why the government incentivizes purchasing real estate. Please join us for episode 250 of Investing in Real Estate!

More About This Show
The tax law in the United States is created to incentivize growth of the economy. For that reason, business owners and investors typically are rewarded through the tax code. These plans are built around what the government wants its citizens to do, and the GOP’s newest tax plan is no different.

The best way to lower your overall tax burden is to take advantage of these government incentives. As tax genius Tom Wheelwright has said, “If you’re a real estate investor and you’re paying taxes, you’re doing it wrong.” This new bill will make it even easier for investors to benefit from the tax law.

When asked for his opinion on the bill, Wheelwright posited that the framework has many benefits. We plan to have him back on the show in order to learn his professional expertise and insights into the future of the tax code.

In addition to benefiting from a lower tax rate, a last minute provision to the tax law is another advantage to investors. This allows a tax cut to pass through entities, such as an LLC. This permits investors to take a 20% deduction if you earn passive income in a pass through entity.  

On today’s show, we’re diving deep into the tax plan, including the mortgage interest deduction and the corporate tax rate. We’ll talk about why we’re aiming to pay our property taxes before the end of the year, and how we plan to best navigate the new rules. If you’re interested in taking advantage of the tax code, today’s show is for you!

On this episode you'll learn: 

  • What is a pass through entity?
  • Why are W2 employees generally taxed at a high rate?
  • What is the history of government built housing? 
  • What is the future of the mortgage interest deduction?
  • And much more!

Episode Resources
Fund&Grow
Rich Dad Poor Dad by Robert Kiyosaki
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The most recent tax plan is the biggest tax overhaul in over 30 years. This plan aims to enact tax cuts for both corporations and investors. It’s important to overview what this plan means for you, and how to best prepare for tax season as a real estate investor.