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One of the most powerful benefits of rental real estate is its ability to reduce your overall tax burden. However, you want to make sure you’ve got an exact strategy in place. Determining how to maximize your investments can be confusing, and that's why it's important to take advice from an accountant who fully understands real estate.
On today’s episode, I’m sitting down with CPAs Amanda Han and Matt MacFarland. They’re a husband and wife team who specialize in real estate tax planning. They’re sharing everything you need to know about mitigating your overall tax burden, maximizing depreciation, and more! Don’t miss this episode of Investing in Real Estate!
More About This Show
Although Amanda and Matt have similar backgrounds in terms of their work experience, they had very different circumstances that led them to real estate investing. For Amanda, although she comes from a long line of real estate investors, she showed little interest in investing until she read Rich Dad Poor Dad.
Matt, on the other hand, was working as a CPA and was filing an individual’s tax return. The client had no job, and his only source of income was through real estate. Matt was astounded at the client’s amount of cash flow for a person without a job.
As CPAs who specialize in real estate, Amanda and Matt fully comprehend the tax benefits of owning real estate. Being strategic about your taxes can entirely change your real estate experience. For example, unlike any other investment type, real estate investments are allowed deductions for depreciation.
There is no rhyme or reason for this deduction. As a matter of fact, real estate investments typically appreciate, but the IRS allows investors to write off depreciation and shelter their cash flow. Additionally, Amanda explains that in 2016 there was a bonus depreciation of 50% deduction for brand new appliances installed in rental properties.
On today’s show, Amanda and Matt are sharing their wisdom on tax strategies for real estate investors. We’ll talk more extensively about depreciation, 1031 exchanges, deductions, and more! Amanda and Matt are so knowledgable about this topic; don’t miss episode 119 of Investing in Real Estate!
If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you’ll learn:
- What’s the difference between purchasing properties under an LLC and as a sole proprietor?
- How can you use depreciation as a tax strategy?
- Under what circumstances is a 1031 exchange unnecessary?
- How can you improve your taxation rate in 2017?
- And much more!