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2020 Real Estate Tax Strategies

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    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

    Episode Notes

    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

    Recommended Books

    1:01:40 The Book on Advanced Tax Strategies: Cracking the Code for Savvy Real Estate Investors by Amanda Han and Matthew Macfarland

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