How the Rich Avoid Taxes by Investing in Real Estate

Everyone wants to know how the rich avoid taxes. You hear about it on the news, “billionaire pays zero dollars in taxes this year,” or “this real estate tycoon made millions but gets a tax refund!” This can seem like blatant tax abuse for those not in the investing game. Why do some people get to pay no taxes while others are stuck with a sky-high return just for working their W2 job? The answer lies in the assets you invest in.

Real estate investing is one of the most tax-advantaged assets around. As a real estate investor, you can almost automatically count on lower income taxes while making more money. Don’t believe us? We brought Amanda Han, CPA to top investors, on the show to explain how investors avoid taxes while still striking it rich in real estate. Amanda understands the ins and outs of the tax code, and as a real estate investor, she benefits from knowing real estate write-offs and deductions better than the rest!

On today’s show, Amanda will walk through the top real estate tax deductions and how rookie real estate investors can start paying less in taxes. She’ll also explain real estate professional status (REPS) and using it to lower your taxable income and how to find the perfect tax advisor for you and your properties. If you want to start using the same strategies that the wealthy use to avoid taxes, this is the episode to tune into!

00:00 Intro
10:00 Doing What the Rich Do
12:02 Finding Real Estate-Friendly Advisors
14:09 Start Planning NOW!
17:32 How to Legally Owe Less
23:44 The Tax Teeter Totter
26:20 Tax Deductions Explained
37:46 Tracking Expenses and Real Estate Professional Status
43:17 Getting the Right Tax Advisor
45:32 Do You Need an LLC?
52:34 Rookie Request Line
57:21 Rookie Exam
01:01:27 Rookie Rockstar

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Sign Up for BiggerPockets Pro (It's a Write-Off!):
https://www.biggerpockets.com/membership-types?utm_source=owned_media
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Join the Real Estate Rookie Facebook Group:
https://www.facebook.com/groups/realestaterookie
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Find an Investor-Friendly Agent in Your Area:
https://www.biggerpockets.com/agent/match?utm_source=owned_media
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Grab Ashley’s New Book!
https://store.biggerpockets.com/products/real-estate-rookie?utm_source=youtube&utm_medium=description&utm_campaign=none
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Pick Up Amanda’s Books on Tax Strategies and Use Code “Ashley” or “Tony” at Checkout:
Tax Strategies: https://store.biggerpockets.com/products/the-book-on-tax-strategies-for-the-savvy-real-estate-investor?utm_source=owned_media
Advanced Tax Strategies: https://store.biggerpockets.com/products/the-book-on-advanced-tax-strategies?utm_source=owned_media
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Grab The Classic, “Rich Dad Poor Dad”:
https://store.biggerpockets.com/products/rich-dad-poor-dad?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Amanda:
BiggerPockets: https://www.biggerpockets.com/users/keystonecpa?utm_source=youtube&utm_medium=description&utm_campaign=none
Instagram: @amanda_han_cpa or https://www.instagram.com/amanda_han_cpa/
Keystone CPA: https://www.keystonecpa.com/
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Tools Mentioned in Today’s Episode:
Quickbooks: https://quickbooks.intuit.com/
Google Sheets: https://www.google.com/sheets/
MileIQ: https://mileiq.com/
REPS Tracker: https://repstracker.com/
Stessa: https://www.stessa.com/
Zapier: https://zapier.com/
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Connect with Ashley and Tony on BiggerPockets:
Ashley: https://www.biggerpockets.com/users/echopm?utm_source=youtube&utm_medium=description&utm_campaign=none
Tony: https://www.biggerpockets.com/users/tonyr75?utm_source=youtube&utm_medium=description&utm_campaign=none

Episode 255

Show notes at: https://www.biggerpockets.com/blog/rookie-255?utm_source=youtube&utm_medium=description&utm_campaign=none

#biggerpockets #realestaterookie #rookie255