Please note that this discussion took place before COVID-19, as such you may want to consult your tax professional before acting on the information herein.
In this video, Amanda Han and Matt McFarland of Keystone CPA share their strategies for investors looking to use tax deductions to maximize their gains.
The husband and wife CPA team behind Keystone CPA and authors of The Book on Tax Strategies for the Savvy Real Estate Investor, Amanda and Matt provide top-notch financial and tax solutions in assisting clients achieve maximum profitability on their businesses and investments.
In this talk you’ll learn about:
- The Mortgage Interest Limitation
- Borrowing money from your Primary property
- Explaining HELOC on a Rental Property
- How to Refinance on a Rental or Primary home
- General Rules for LLCs
- Opportunity Zone Investing
- Income Shifting
- Strategies involving Family/Children
- And much more!
Related Article: The Busy Working Mom Edition: Real Estate Investing Guide
00:26 Tax Strategies for Real Estate Investors
00:55 Introductions to Amanda and Matt
01:59 Pop Quiz on Taxes
03:52 Name of Latest Tax Change
07:44 Mortgage Interest Limitation
09:11 The Second Limitation on Tax Reform
09:43 Borrowing Money from your Primary Property
10:46 The Third Limitation of Tax Reform
12:08 Explaining HELOC on a Rental Property
13:19 Interest Deductions
14:40 How to Refinance on a Rental or Primary home
17:39 What is the most common mistake investors make?
18:32 What are some common and legitimate Tax Deductions?
22:24 Home-based Businesses and Taxation
23:03 How can we offset our rental income?
23:48 Tips on how to use a Home Office as a Deductible
24:18 How to maximize deductions for client benefit
25:13 What is Income Shifting?
26:00 How to apply for deductions from children
26:39 How to shift income to your kids?
27:39 What is the minimum age to use kids as a deductible?
28:28 How to shift income to unemployed college children
30:14 If I use someone as a tax deduction, do I need to give him or her money?
31:00 When do I use a 1099 or a W2?
32:14 How to change your family legacy and file tax return for children
33:00 What are the different types of depreciation?
34:53 What is Accelerated depreciation?
37:40 What is Cost Segregation and when is the best time to do it?
38:15 How to offset future taxes
39:23 How does one qualify as a Real Estate Professional?
36:57 Benefits of qualifying as a Real Estate Professional
41:15 How can spouses qualify as Real Estate Professionals?
42:25 How do LLCs operate in California?
43:45 General Rules for LLCs
45:12 How to avoid California LLC fees?
46:13 The penalties for non-payment of LLC fees
46:42 Retirement Planning and Real Estates
48:58 What is Opportunity Zone Investing?
50:36 Who should pursue Opportunity Zone Investment?
52:22 How stable are tax laws?
53:06 Explaining deductions for travel to property
54:21 Income shifting strategy involving Family/Children
55:18 How to calculate taxes when selling a depreciated property
56:44 Explaining passive and active investors
58:32 Explaining acquisition costs and deductions
59:32 How to differentiate repairs versus improvement