How to Avoid Income Taxes (Legally) with Real Estate Investing

Поділитися
Вставка
  • Опубліковано 7 чер 2024
  • ⭐ Join Rental Property Mastery, my coaching & learning community:
    www.coachcarson.com/RPM-YT
    🎙️ Episode 282 - If you make $100K in earned income, you may pay ~$30K in income taxes. But say you make that same $100K in rental income, you can (legally) pay $0 instead in taxes. Find out how and discover the tax form that every real estate investor should know.
    📄 Show Notes: www.coachcarson.com/avoidinco...
    🎬 Timestamps:
    0:00 - Power of Real Estate
    1:44 - Behind the scenes
    5:11 - CPA firm + REI
    8:42 - Rental vs. Earned Income
    13:33 - Depreciation
    20:07 - Passive Losses
    23:42 - Cost Segregation
    33:18 - Short-term Rental
    38:20 - Real Estate Pro
    44:18 - Buy & Hold Long-term
    53:14 - 1031 Exchange
    57:15 - Self Directed IRA
    1:02:06 - Connect with Brandon
    --------------------------
    ⚒️ Get my FREE Real Estate Investor Toolkit:
    www.coachcarson.com/toolkit-yt/
    🖥️ My Real Estate Courses: courses.coachcarson.com
    • 30 Days to a Better Rental Investor
    • Creative Financing for Real Estate Investors
    📚 My Books:
    📘 The Small & Mighty Real Estate Investor: www.coachcarson.com/smallandm...
    📙 Retire Early with Real Estate: www.coachcarson.com/retiremen...
    💰 DealMachine - Software to help you buy more real estate deals:
    www.coachcarson.com/dealmachi...
    ✅ Subscribe for more videos about real estate investing:
    ua-cam.com/users/CoachCha...
    👋 Connect with me:
    / coachchadcarson
    / coachchadcarson
    / coachchadcarson
    🌐 For everything else: www.CoachCarson.com

КОМЕНТАРІ • 58

  • @davidpiccuta2276
    @davidpiccuta2276 Місяць тому

    Hi Chad, my wife and I heard you speak at end of 2023 at UCREA meeting in Greenville, SC. We have been investing and practicing long term holds for over 21 years, I turned 60 years old last week. This is excellent content. You and your guest CPA simplified the concepts extremely well. Pls keep posting this type of material especially for the young 20 and 30 year old investors as time is on their side and they will become very wealthy. Thank you.

  • @58jcee
    @58jcee 11 місяців тому +6

    By far one of the most beneficial videos to watch for real estate investors. Brandon is a CPA that all investors need on their teams! Already bookmarked the 2 plugs mentioned! Thank you Coach Carson!!

  • @mikeh6583
    @mikeh6583 16 днів тому

    Good stuff really appreciate your work!

  • @jonyezek8546
    @jonyezek8546 Рік тому

    Thanks for always publishing valuable and relatable content that is easy to understand

  • @davidstephens9594
    @davidstephens9594 Рік тому +2

    This is a very productive discussion! Thanks

  • @deaniven8822
    @deaniven8822 Рік тому +1

    Great Job Coach! Very informative.

  • @timothybracken1728
    @timothybracken1728 Рік тому +9

    No one mentions that the depreciation would be recaptured at the sale of the property. Depreciation Recapture Tax...?

    • @freeffree4133
      @freeffree4133 Рік тому +11

      They definitely said it. They said don't sell and your kids get to reset their basis after you die.

    • @jessescott3558
      @jessescott3558 4 місяці тому

      Exactly

  • @lailaatallah1857
    @lailaatallah1857 9 місяців тому +1

    This conversation and information blew my mind! Thanks for making tax stuff so accessible, you two.
    I want to explore more Re cost segregation and also solo 401k’s and self directed IRAs.
    Hearing two very experience investors who talk to lots of other investors say that buy and hold (or 1031’ing) is one of the best ways to achieve wealth is fascinating & reassuring.

  • @nashriver6952
    @nashriver6952 4 місяці тому

    This is awesome thanks

  • @jeffreyslachetka4632
    @jeffreyslachetka4632 2 місяці тому

    Awesomely valuable! Thanks!

  • @Mistermackey
    @Mistermackey Рік тому

    Great episode.

  • @shumatsuopost
    @shumatsuopost Рік тому +2

    It's especially interesting to hear about the various deductions and write-offs that are available for real estate investors.

  • @lorenazaragoza6411
    @lorenazaragoza6411 Рік тому

    Thanks gentlemen for the wealth of knowledge!

  • @tdotty24
    @tdotty24 Рік тому

    Thank you for the cheat codes ❤

  • @MichaelDillin
    @MichaelDillin Рік тому +2

    Sounds like a great concept to Airbnb or full-time W2 employees do you have a one-page PDF cheat sheet that we can share with our accountants to help them understand it and ask their opinion or do we have to go to you to do our taxes?

  • @quinteroloft9530
    @quinteroloft9530 Рік тому

    Thanks for the videos, this is another great one. What do you think about getting condos for rental with low HOA?

    • @CoachChadCarson
      @CoachChadCarson  Рік тому +1

      thanks for watching. Condos can be good investments as long as you do your due diligence on the HOA itself. Make sure it's well run and doesn't have a bunch of looming repair expenses to pay that might increase those fees or cause a one time assessment.

    • @quinteroloft9530
      @quinteroloft9530 Рік тому

      @Coach Carson thanks for the response. Will do.

  • @ragslaxbondo1030
    @ragslaxbondo1030 7 місяців тому

    This podcast just downgraded 3 months of recent self-learning anxiety about real estate investment taxes. Thank you, Coach Carson and Brandon Hall.

    • @CoachChadCarson
      @CoachChadCarson  2 місяці тому

      you're welcome! Thanks for the feedback and for watching.

  • @Kate-fn8rj
    @Kate-fn8rj 8 місяців тому

    Is one (landlord) able to write off one time special assessment relating to shortfall for insurance premiums? (Common assessment these days in FL). Thanks

  • @LC-gu2sc
    @LC-gu2sc 3 місяці тому

    Great listened until the end, recently divorced, split investments with spouse who was the realestate professional I was the 1099 employee. I now need to know the tax infor as he handled that part of business. Thx for filling in many holes.

  • @austinkrieg226
    @austinkrieg226 10 місяців тому

    Is it possible to use depreciation on W2 income?

  • @robhemmerle643
    @robhemmerle643 Рік тому

    Again. What an excellent episode.
    So as you carryover those losses as passive, how does it work when you finally become a real estate professional? As in, now that you are a pro, does any future income from a rental count as active and you can only offset those past year losses on new businesses that would be considered passive? Also curious if taking money out of a 401k would be considered active income or could you use passive losses from real estate to offset?
    Maybe just some questions for a future episode.

    • @CoachChadCarson
      @CoachChadCarson  Рік тому +2

      Good questions, Rob. And I'm not sure on the answers. I'll see if I can tag Brandon to respond or answer in a future episode.

  • @JorgeSanchez-je4bt
    @JorgeSanchez-je4bt 7 місяців тому

    If you form an LLC and the deferred 1031 tax is tied to the company, does personal death contribute to clearing out the taxes owed still?

  • @karlagearheard5746
    @karlagearheard5746 Рік тому +1

    Great episode Coach! If I use a self directed 401k to fund my first property am I able to refinance or pull money out for another property?

    • @CoachChadCarson
      @CoachChadCarson  Рік тому

      There are loans out there for 401ks but they need to be non-recourse. Most real estate loans won't fit that requirement but you can ask around and look for private loans.

  • @shavellleslie4779
    @shavellleslie4779 Рік тому

    Hey coach I need to have a one on one with you , great video

    • @CoachChadCarson
      @CoachChadCarson  Рік тому

      Thanks for watching. I may open up some 1-1 slots soon since I'll have a little more time. Are you on my email newsletter list (coachcarson.com/newsletter)? That's where I'll announce it.

    • @libbyhuncke2147
      @libbyhuncke2147 Рік тому

      Me too, Coach. I'm interested on a one on one with you.

  • @albongo3949
    @albongo3949 Рік тому

    Great info great point of contact for a wealth of information and opportunity for doing business as we grow. Thanks coach!

  • @libbyhuncke2147
    @libbyhuncke2147 Рік тому +1

    Can one claim depreciation for bathroom or exterior renovations like decks and porch?

    • @CoachChadCarson
      @CoachChadCarson  Рік тому

      Yes, you can. They just start in the year you do the remodel.

  • @truckerzee9643
    @truckerzee9643 Рік тому +1

    Hey Coach! I’m looking for some free spreadsheets for real estate

    • @CoachChadCarson
      @CoachChadCarson  Рік тому +1

      No problem. Here's a free Rental Analysis Spreadsheet: www.coachcarson.com/rental-property-calculator-spreadsheet/

    • @marthamcauliffe
      @marthamcauliffe Рік тому

      @@CoachChadCarson a

  • @drewnicest4319
    @drewnicest4319 Місяць тому

    Hey Coach, when you're constantly writing off depreciation for tax purposes, how do you then get more loans considering your income on the books is so minimal?

    • @CoachChadCarson
      @CoachChadCarson  Місяць тому

      I don't get more regular loans is my answer. Residential lenders are the only ones who would ding you for having a lot of depreciation.
      I've mainly used private lenders and commercial lenders, both of whom can look through the depreciation and see the real cash flow picture.

    • @drewnicest4319
      @drewnicest4319 Місяць тому

      @@CoachChadCarson thank you so much for the reply, very much appreciated

  • @_aspenjay
    @_aspenjay 2 місяці тому

    Do you mind sharing your CPA in Greenville?

  • @MortgageFreeJourney
    @MortgageFreeJourney Рік тому +1

    This is so confusing to me 😔

    • @CoachChadCarson
      @CoachChadCarson  Рік тому

      Is there anything in particular I can explain better or more?

    • @MortgageFreeJourney
      @MortgageFreeJourney Рік тому

      @@CoachChadCarson wow! Thanks for Coach responding. Your channel has taught me so much ab REI.
      It’s just taxes in general. It’s like rocket science for my brain 😂

    • @CoachChadCarson
      @CoachChadCarson  Рік тому

      @@MortgageFreeJourney Ha, Ha! Good analogy. It really is confusing at first. The good news is that if you learn little by little, it can make you money (more accurately saving in most cases). So it's learning that pays!
      I made a video about the top tax benefits of real estate (ua-cam.com/video/HCuIA1r1z_o/v-deo.html) and I wrote a similar article for the MadFientist.com if you want to read it (www.madfientist.com/tax-benefits-of-real-estate-investing/)
      Best of luck and thanks for watching!

  • @shannonhail5597
    @shannonhail5597 Рік тому

    Monopoly is the most boring game in the world!

    • @CoachChadCarson
      @CoachChadCarson  Рік тому

      Do you have a favorite game instead?

    • @shannonhail5597
      @shannonhail5597 Рік тому

      Oh gosh, you are so nice to ask. I like a lot of different games, lately have been playing Backgammon! I just cant do Monopoly!