The utilization of after-tax money and tax-free growth makes opening a Roth IRA very advantageous. Through a careful guidance of my FA, I did not pay taxes on my withdrawals of $2.86 million when I retired.
I don't regret the numerous financial mistakes I've made in the past since I've learnt from them. But the biggest one was planning my finances without consulting with a licensed financial counsel.
Indeed, I did make use of a financial counselor. As I get closer to retirement, their advice has been really helpful. I thought compound interest on index funds wouldn't be sufficient because I started late. It's amusing how I've done better than colleagues who have more years of investment experience. I've profited more than $886k tax free.
@@maryHenokNft I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
She's known as *Gertrude Margaret Quinto* One of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
I ❤ the way you teach! Specifically, you break the tax laws down for easy assimilation. You also provide overviews and takeaways of the video. Thanks Karlton!
One of the best moves I ever made in my life. Filed taxes this year and was amazed. I’m hooked. Thank you KD. I looked at an in-depth older video of yours end of last year or beginning of this year about this same topic. And an older video on the tax savings on the different business structures. The laws of the universe and attraction are making my goals inevitable.
So essentially if it's not a short term rental, and youre just renting to a tenant for 12-13 month lease agreements, the only benefit to a rental would be the cash flow from the tenant and a person wouldnt be able to take advantage of any potential losses or depreciation? Was thinking about renting somewhere and using my primary residence as a rental, but seems like it may not be worth it?
Karlton, as I understand you, since I am an early retiree who owns rental property, I can claim active rental losses on other income such as pension, social security and the sale of other real estate? Plus, I use my spouse, who is a lawyer to manage the property as well as pay her a monthly legal retainer. Am I going in the right direction? Thanks.
Been studying the topic of using depreciation in real estate to offset taxes and I was thrown a curveball when I came across the term “real estate professional”. This video came right on time and as always, you do such a great job explaining. I do however, find it hard to believe that the “wealthy” are spending 750 hours a year in real estate or own majority of their real estate in short-term rentals… I could be wrong.
@@karltondennisI'm treasurer on a board of directors of a 400 plus townhome community. So I eat and breathe property management as fulfilling my duty as an almost full time volunteer. Would this qualify me as a real estate professional? Bcuz that would be very helpful in my tax life. Great video!!
Great wealth of knowledge. Your explanation skills of this knowledge are on point. Bought an old home in MD for $235k, received 4 lots on one deed with their own tax base. I rebuilt the original home with $200k construction loan and $130k in credit cards. I lived on lot #2 until the rebuild was done and renovated lot #2 as well. Now, I rent lot #2 but it came as one of the gifted lots. I build a work space on the back side of the rebuild to work from. The other two lots are .5 per acre land. I am a self-employed person working from a dedicated space of my home. I did not know I could depreciate my work space (34.23 %) of home. 2021, rented a section of rebuild home (10%) to a friend after closing down my business for six months. trying to understand cost basis to apply depreciation to my home, business and how to file 3115 form for lot #2, I dropped depreciation 1.5 years I had no tenant??
Hey bud, your videos are money!!!!!🎉🎉 Thank you for all the value. Tell your team to keep up the good work for me. You guys are killing this space. Can't wait for the end of the month challenge. Stay blessed.
Karlton, thank you for taking the time to make this video and share valuable information. It took me some additional research and study to fully comprehend the rule to the point of confidently sharing this with my clients and give them assurance that, if they meet the requirements, the losses could be legitimately claimed. Thanks again.
WOW what an education. I’m sold. THANK YOU for your service. I had been wondering for years how to actually use real estate properly for offsetting taxes. Nobody had ever explained or even mentioned any of these topics to me. Wouldn’t have even known what to ask Google. Planning to do this immediately. Thank you!
Hey Karlton - if you have a spouse that doesn’t work, can they claim real estate professional status and then file jointly and use their real estate professional status to use passive losses to offset active income?
So if I sell the home in 5 years. And they do bonus depreciation recapture, do they just take back all the money I saved on taxes? Wouldn't that just be a wash?
So, in a nutshell, if I were interested in purchasing my first rental property, what would be the primary ways to offset W2 income without the professional real estate status? Would you recommend an STR as a first property or LTR?
To show time in the real estate operations. Can you just open a property management company, hire your own company to manage your business and be your own employee.
Can I start a cost segregation study on a property I’ve already owned for several years (when the standard depreciation schedule has already been started)?
Thank you KD amazing content! While researching about LLC for my 4 rental props your channel showed up. I’m hooked so much I’m learning here my CPA doesn’t even tell.
We do Airbnb(rent out 1 of our bedrooms. Been doing it for 2.5 yrs. and luv it). But what are all the tax write offs we can use when we do our taxes in Feb.?? Tytyty❤
If you choose not to take depreciation on a rental, do you still have to pay it back if you end up selling the property? 2. For high w2 earner, do you still qualify for taking deductions such mortgage interest and depreciations on the rental income?
My client rents out his basement. He’s a travel nurse and outsourced the management. I couldn’t justify him writing off the rental losses. He’d have to be spending 15 hours a week all year to hit that 750 hours. He’s a travel nurse working overtime.
This is literally the video that made me follow you… 💪🏽 really appreciate all this information. I look forward to implementing all the strategic tools to my real estate venture. Thanks
Could you please comment on this statement? “Capital gains are not passive income; they are portfolio income. This distinction is essential for tax purposes because it affects how deductions like depreciation can be applied. ” Thank you,
Just bought a house for rental by students. It is going to be yearly leases. Each year a new lease. My wife works 20 hours a week, so she can be setup is Real Estate Professional Status? She is on a deed. - Subscribed.
Great video. I have owned a short term rental for about 2 years that have taken a loss each year; however I have been told my w2 income is too high to qualify for those losses. Is that accurate?
Great explanation. I'm wondering though, by changing STR income to active, you will then have to move it from a Schedule E to a Schedule C and pay more taxes, SS and medi. So, is it really advantages to offset on one end by adding to the other?
Even when an STR's income qualifies to be considered non-passive income, it still goes on Schedule E and you still don't have to pay SS or Medicare tax on that income. The difference in how it is taxed actually is how the income is handled on form 8582. Most professional tax software has a "non-passive" option that you can select to make it use that different tax treatment.
did you ever make the video on creating a management company for dealing with our personal rentals? Any recommendations on finding a cpa that does Cost Segregation study?
Thank you for this video very helpful!! QUESTION! My tax professional is stating if I put my current rental property (which was my primary residence and I moved out of it to make it a rental) into an LLC and do a schedule C with him when filing I will be able to write off all of my depreciation and losses etc and deduct that from my W2? Is this correct or is he misinformed? He said the reason I cannot deduct it from my W2 currently is because it’s not in a LLC… just want others thoughts.
My accountant is telling me that if I'm earning over 250k per year, I can no longer offset my taxes with rental real estate losses. Is that right? If so, what else can I do? Thank you
Link to a video that connects the property management company while remaining within the guidelines of achieving the short term rental property depreciation realization? To rephrase, achieving the 100 hours materially participating but also pairing the property management company aspect?
Great video. If I purchase a short term rental property, and I spend at least 100 hours, and it's more than anybody else, and I now have an active real estate business, can I now consider myself a RE professional and utilize depreciation losses from another investment as 'ordinary losses' to offset my W-2 and K-1 income? I'm currently (passively) invested in a couple shopping centers that are being remodeled and adding tenants to prepare for a sale next year. I want to be able to capture the depreciation (from the cost seg.) to offset OI. Thanks
Thank you so much! First real estate video I have seen that, not only explains the terms being thrown around but, the actual strategies and the rationale for them.
Thanks for the great video! It sounds like to meet the 100 hours material participation, the short term rental business has to be local. Then how shopping outside states work to meet that criteria? Thank you!
Thank you. What if someone bought a camp ground with some short term renters. Can she use the short term rental status to claim nonpassive income to offset the W2 income?
So we inherited the paid off home next door and I work part time in my own cleaning painting business and husband works full time. So i have the time to invest and want to offset his w2 and my 1099. We dont want to short term. So how would I account for 750 hours?set up a management company? Going to watch that next.
you answered all my questions except one. can my mid-term rental be used to offset active income? my leases are usually 1-3 months. not short-term, but not long-term either. would love to know the answer. Thanks!!
Mid-term rentals are basically treated as long-term rentals by the tax code. When your average stay is 7 days or less, you may potentially qualify for the "short-term rental loophole". When your average stay is 30 days or less, you have to depreciate the property over 39 years instead of 27.5. Once the average stay is over 30 days, everything else is the same as a long term rental for tax purposes.
Thanks for your great video. Why does the K-1 (two partners) (two different states) not rolling over the losses to the self-employment taxes or 1040, only carry forward the loss each year. Should it be an override on Schedule-C...Thank you!
So if you buy land and develop it that requires time and resources do build plus it’s only land value so you can claim depreciation on new property? Does this new property then have to be a short term rental property to offset other rental income. And put all properties under one company a managing company? What makes that business a managing company besides managing the rents/landlord duties?
Informative video. One thing I noticed missing was the cap on real estate losses. You are only allowed 25k in loss if you make under 100k w2 income. I’ve lost 20k in write offs 4 years straight. How can I get around this cap
Hello Karlton you. Ideos are very informative. What tax benefits do I have if I locked in a tenant for a 12 month lease? This is my first rental property I purchased.
Karlton, I just bought your tax bundle course and had a question. Can you amend past tax filing to claim depreciation on a real estate property? I'm in the processing of selling my property, but I thought I may be able to go back and claim depreciation when I owed it (for 15 years)?? Thanks
You can't amend returns to fix past depreciation issues other than just the last return that you filed. For depreciation issues before that, it's possible to correct some types of depreciation issues with a form 3115 change in accounting method. But that's a complicated process and not many tax professionals have experience with how to do that.
Just dropping comments for the algo King, I definitely need to cop one of your programs though. I’ve been a stock guy for the longest, but I’m ready to throw my hat in the real estate ring 💪🏾
Only question always heard if you file loss to pay less taxes it hurts to show for banks as a good business to be good for a loan ? So is this a good way to declare loss but still get approved for bank loans
I love this channel and appreciate all the great explanations. If I do not have a W2 and spend most of my time doing real estate deals. I have a few rental properties some of them I manage myself. Some are in other states with property managers. Will I be considered a real estate professional? As I do not have a W2 income. I can use my depreciation on that. But I guess most of my rental profit will be tax free as I will have depreciation plus other costs.
Yeah, if you don't have non-rental income to offset, then there wouldn't really be a reason to try to qualify for real estate professional status. But hours spent on your own rental properties do count towards the qualifying hours. Well, one catch is you probably can't count hours spent on short-term rentals (with an average stay of 7 days or less). Two tax court cases upheld the position that STR rentals aren't a qualified real estate activity to qualify for real estate professional status.
@@hipzwhitetower7413 Yes. Keep in mind 750 hours is the minimum number of hours, but also real estate work has to be your primary job, so you can't spend more hours on any other type of work.
![How to Use Rental Losses to OFFSET W2 Taxes! [Part 2]](http://i.ytimg.com/vi/XSflOWt7kZQ/mqdefault.jpg)
![How to Use Rental Losses to OFFSET W2 Taxes! [Part 2]](/img/tr.png)
The utilization of after-tax money and tax-free growth makes opening a Roth IRA very advantageous. Through a careful guidance of my FA, I did not pay taxes on my withdrawals of $2.86 million when I retired.
I don't regret the numerous financial mistakes I've made in the past since I've learnt from them. But the biggest one was planning my finances without consulting with a licensed financial counsel.
Indeed, I did make use of a financial counselor. As I get closer to retirement, their advice has been really helpful. I thought compound interest on index funds wouldn't be sufficient because I started late. It's amusing how I've done better than colleagues who have more years of investment experience. I've profited more than $886k tax free.
@@maryHenokNft I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
She's known as *Gertrude Margaret Quinto* One of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.
Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.
I ❤ the way you teach! Specifically, you break the tax laws down for easy assimilation. You also provide overviews and takeaways of the video. Thanks Karlton!
Hi, you’re so right; setting up the rental investment right - from a tax angle - at the beginning is key. Just subed!
Thanks!
Game changing knowledge for me! Now I have to watch all the other videos.
Thanks!
When you go onto these websites like Zillow, ECT. I can not find the entire tax history report. I only see the property tax and tax assessment.
It’s crazy how many Tax pros don’t know the information he put out in this video.
One of the best moves I ever made in my life. Filed taxes this year and was amazed. I’m hooked. Thank you KD. I looked at an in-depth older video of yours end of last year or beginning of this year about this same topic. And an older video on the tax savings on the different business structures. The laws of the universe and attraction are making my goals inevitable.
does looking for a property count towards the 750 hours needed to offset taxes on your w2/1099 before buying the rental property??
Karlton I wanted to ask if you do tax returns ? Thanks for all your good information.
Yes. Link in description to book a call
So essentially if it's not a short term rental, and youre just renting to a tenant for 12-13 month lease agreements, the only benefit to a rental would be the cash flow from the tenant and a person wouldnt be able to take advantage of any potential losses or depreciation? Was thinking about renting somewhere and using my primary residence as a rental, but seems like it may not be worth it?
Karlton, as I understand you, since I am an early retiree who owns rental property, I can claim active rental losses on other income such as pension, social security and the sale of other real estate? Plus, I use my spouse, who is a lawyer to manage the property as well as pay her a monthly legal retainer. Am I going in the right direction? Thanks.
Amazing videos and I have always been a big fan.
Wondering if you can do a video on using non profits for write offs and does it provide W2 benefits?
Been studying the topic of using depreciation in real estate to offset taxes and I was thrown a curveball when I came across the term “real estate professional”. This video came right on time and as always, you do such a great job explaining. I do however, find it hard to believe that the “wealthy” are spending 750 hours a year in real estate or own majority of their real estate in short-term rentals… I could be wrong.
Glad I could help. Look forward to sharping your understanding during the Tax Free Wealth Event !
@@karltondennis@karltondennisofficial I love love your content. Can I qualify as a real estate professional status if I'm real estate agent?
@@karltondennis does looking for a property count towards the 750 hours needed to offset taxes on your w2/1099 before buying the rental property??
@@karltondennisI'm treasurer on a board of directors of a 400 plus townhome community. So I eat and breathe property management as
fulfilling my duty as an almost full time volunteer. Would this qualify me as a real estate professional? Bcuz that would be very helpful in my tax life. Great video!!
Great wealth of knowledge. Your explanation skills of this knowledge are on point. Bought an old home in MD for $235k, received 4 lots on one deed with their own tax base. I rebuilt the original home with $200k construction loan and $130k in credit cards. I lived on lot #2 until the rebuild was done and renovated lot #2 as well. Now, I rent lot #2 but it came as one of the gifted lots. I build a work space on the back side of the rebuild to work from. The other two lots are .5 per acre land. I am a self-employed person working from a dedicated space of my home. I did not know I could depreciate my work space (34.23 %) of home. 2021, rented a section of rebuild home (10%) to a friend after closing down my business for six months. trying to understand cost basis to apply depreciation to my home, business and how to file 3115 form for lot #2, I dropped depreciation 1.5 years I had no tenant??
Hey bud, your videos are money!!!!!🎉🎉 Thank you for all the value. Tell your team to keep up the good work for me. You guys are killing this space. Can't wait for the end of the month challenge. Stay blessed.
Thank you for your video. However, what happens when the property is older than 27 years? Can’t use depression
Good question what happened ?
Awesome. Jammed-packed information. I actually stop all my multitasking to focus. Saved to research. Subscribed and liked
Stellar presentation along with FACTS makes this a keeper!
Karlton, thank you for taking the time to make this video and share valuable information. It took me some additional research and study to fully comprehend the rule to the point of confidently sharing this with my clients and give them assurance that, if they meet the requirements, the losses could be legitimately claimed. Thanks again.
WOW what an education. I’m sold. THANK YOU for your service. I had been wondering for years how to actually use real estate properly for offsetting taxes. Nobody had ever explained or even mentioned any of these topics to me. Wouldn’t have even known what to ask Google. Planning to do this immediately. Thank you!
Could you do a video on how to actually fill out a Massachusetts state income tax return?
My Tax software does all of the work for me. This isn’t worth your time in my opinion. Tax filing should be outsourced
Thank you Karlton!! I am truly fan of your work. keep it going!
Hey Karlton - if you have a spouse that doesn’t work, can they claim real estate professional status and then file jointly and use their real estate professional status to use passive losses to offset active income?
Yes! Definitely
So if I sell the home in 5 years. And they do bonus depreciation recapture, do they just take back all the money I saved on taxes? Wouldn't that just be a wash?
So, in a nutshell, if I were interested in purchasing my first rental property, what would be the primary ways to offset W2 income without the professional real estate status? Would you recommend an STR as a first property or LTR?
Karlton- I learn a lot from your content . Thanks so much! Please keep dropping GEMs to the community.
To show time in the real estate operations. Can you just open a property management company, hire your own company to manage your business and be your own employee.
Lol ypu answered it in the video like a minute after I asked
Where part 2?
KD does the STR property have to be in the United States in order to take advantage of these strategies? Or can the property be in another country?
Needs to be US based to use the cost segregation strategy
i tried this and now i am dealing with an IRS audit ... great work
call my office on monday. we would love to defend you against the IRS on this matter. 714-252-5822.
Can I start a cost segregation study on a property I’ve already owned for several years (when the standard depreciation schedule has already been started)?
Thank you KD amazing content! While researching about LLC for my 4 rental props your channel showed up. I’m hooked so much I’m learning here my CPA doesn’t even tell.
We do Airbnb(rent out 1 of our bedrooms. Been doing it for 2.5 yrs. and luv it). But what are all the tax write offs we can use when we do our taxes in Feb.?? Tytyty❤
Thanks. Would love to see a video discussing how the sale of a property might allow carryover PALs to offset W2 income.
I love this video
Thank you Karlton! I was beginning to look into selling one of my properties where I currently have long-term rentals. However, I am now reevaluating.
Started my business and bought a rental this year I’ll definitely need your help
Hey, this is an awesome video!!! I really appreciate your style of teaching. I’m going digging in your channel after I finish this series…
If you choose not to take depreciation on a rental, do you still have to pay it back if you end up selling the property?
2. For high w2 earner, do you still qualify for taking deductions such mortgage interest and depreciations on the rental income?
Hmmm I don't understand the locking and unlock explanation.I confused@ 20:52. Why is it locked ..
Wow! I just came across your video, and I can say I learned so much about tax terminology and information. Thank you very much!
My client rents out his basement. He’s a travel nurse and outsourced the management. I couldn’t justify him writing off the rental losses. He’d have to be spending 15 hours a week all year to hit that 750 hours. He’s a travel nurse working overtime.
This is literally the video that made me follow you… 💪🏽 really appreciate all this information. I look forward to implementing all the strategic tools to my real estate venture. Thanks
If you have a property manager, does these discounts still apply?
If my wife stays at home and does all the research for the properties we are trying to buy would that account for the 750 hours?
What if you buy land only for future development and you lose money on the purchase based on its assessed value or purchased value?
thank you for this video. I’ve just been studying about this and hoping to have enough courage to start this type of invesment
I've seen a lot of different videos addressing these topics but yours is truly the best! Thank you sir you have a gift :)
great channel man. you have a new viewer. thanks for sharing your knowledge.
Could you please comment on this statement?
“Capital gains are not passive income; they are portfolio income. This distinction is essential for tax purposes because it affects how deductions like depreciation can be applied. ”
Thank you,
Do you do Cost Segregation Studies?
I imagine the cost segregation study will cost 4k.
Absolutely amazing video! 🙌🏽 very thorough explanation of the different avenues to utilize this strategy. Fantastic job 👍🏽
Just bought a house for rental by students. It is going to be yearly leases. Each year a new lease. My wife works 20 hours a week, so she can be setup is Real Estate Professional Status? She is on a deed. - Subscribed.
Great video. I have owned a short term rental for about 2 years that have taken a loss each year; however I have been told my w2 income is too high to qualify for those losses. Is that accurate?
Great explanation. I'm wondering though, by changing STR income to active, you will then have to move it from a Schedule E to a Schedule C and pay more taxes, SS and medi. So, is it really advantages to offset on one end by adding to the other?
@kartltondennisoffical Can you elaborate on this please?
Even when an STR's income qualifies to be considered non-passive income, it still goes on Schedule E and you still don't have to pay SS or Medicare tax on that income. The difference in how it is taxed actually is how the income is handled on form 8582. Most professional tax software has a "non-passive" option that you can select to make it use that different tax treatment.
This is a phenomenal video. It all finally makes send to me. I was perceiving this the wrong way.
Hey! Great video. Question - does renting out a bedroom count towards this? 15:25
did you ever make the video on creating a management company for dealing with our personal rentals? Any recommendations on finding a cpa that does Cost Segregation study?
Thank you for this video very helpful!! QUESTION! My tax professional is stating if I put my current rental property (which was my primary residence and I moved out of it to make it a rental) into an LLC and do a schedule C with him when filing I will be able to write off all of my depreciation and losses etc and deduct that from my W2? Is this correct or is he misinformed? He said the reason I cannot deduct it from my W2 currently is because it’s not in a LLC… just want others thoughts.
I have the same question
You are Awesome my friend. Period. Peace.
Where's part 2, long term rental
Yes, but how many weeks a year does the property have to be rented for? What if it is a seasonal property?
My accountant is telling me that if I'm earning over 250k per year, I can no longer offset my taxes with rental real estate losses. Is that right? If so, what else can I do? Thank you
Unfortunately, that’s correct.
Truly fantastic wisdom! How can I hire you as my tax strategist? I’m serious ASAP!
Join The Tax Free Wealth Challenge, this is the ONLY way to work with me directly
Also, thank you so much for all this information. Learning a lot from you.
Link to a video that connects the property management company while remaining within the guidelines of achieving the short term rental property depreciation realization? To rephrase, achieving the 100 hours materially participating but also pairing the property management company aspect?
Tell me more about off setting my w2
Great video. If I purchase a short term rental property, and I spend at least 100 hours, and it's more than anybody else, and I now have an active real estate business, can I now consider myself a RE professional and utilize depreciation losses from another investment as 'ordinary losses' to offset my W-2 and K-1 income? I'm currently (passively) invested in a couple shopping centers that are being remodeled and adding tenants to prepare for a sale next year. I want to be able to capture the depreciation (from the cost seg.) to offset OI. Thanks
Thank you so much! First real estate video I have seen that, not only explains the terms being thrown around but, the actual strategies and the rationale for them.
Thanks for the great video! It sounds like to meet the 100 hours material participation, the short term rental business has to be local. Then how shopping outside states work to meet that criteria? Thank you!
Always spitting gems 💎🔥🤙🏼
Thank you. What if someone bought a camp ground with some short term renters. Can she use the short term rental status to claim nonpassive income to offset the W2 income?
So we inherited the paid off home next door and I work part time in my own cleaning painting business and husband works full time. So i have the time to invest and want to offset his w2 and my 1099. We dont want to short term. So how would I account for 750 hours?set up a management company? Going to watch that next.
Amazing content very detailed in explaining the loopholes for rentals.
you answered all my questions except one. can my mid-term rental be used to offset active income? my leases are usually 1-3 months. not short-term, but not long-term either. would love to know the answer. Thanks!!
Mid-term rentals are basically treated as long-term rentals by the tax code. When your average stay is 7 days or less, you may potentially qualify for the "short-term rental loophole". When your average stay is 30 days or less, you have to depreciate the property over 39 years instead of 27.5. Once the average stay is over 30 days, everything else is the same as a long term rental for tax purposes.
The real KD!! What's good Coach
Thanks for your great video. Why does the K-1 (two partners) (two different states) not rolling over the losses to the self-employment taxes or 1040, only carry forward the loss each year.
Should it be an override on Schedule-C...Thank you!
So if you buy land and develop it that requires time and resources do build plus it’s only land value so you can claim depreciation on new property? Does this new property then have to be a short term rental property to offset other rental income. And put all properties under one company a managing company? What makes that business a managing company besides managing the rents/landlord duties?
Bro great information, opened my eyes in soo many ways on why we need real estate
Informative video. One thing I noticed missing was the cap on real estate losses. You are only allowed 25k in loss if you make under 100k w2 income. I’ve lost 20k in write offs 4 years straight. How can I get around this cap
Someone finally made this video. Fantastic work
Thank you so much for educating us !!! Great Job
Does obtaining a real estate license qualify for IRS professional status hours?
Hello Karlton you. Ideos are very informative. What tax benefits do I have if I locked in a tenant for a 12 month lease? This is my first rental property I purchased.
This was very informative video. Going to check out part 2
Super knowledgeable on the info. Thank You for sharing
hi Karlton, I'm 20 years old. I interested in studying about taxes. I found your channel and it's very helpful (Thanks a lot}
Setting up an LLC for a property I'm thinking of buying. Is that a good idea???
Karlton, I just bought your tax bundle course and had a question. Can you amend past tax filing to claim depreciation on a real estate property? I'm in the processing of selling my property, but I thought I may be able to go back and claim depreciation when I owed it (for 15 years)?? Thanks
Yes. The real question is … is it worth it? My team and I can help you determine that answer
You can't amend returns to fix past depreciation issues other than just the last return that you filed. For depreciation issues before that, it's possible to correct some types of depreciation issues with a form 3115 change in accounting method. But that's a complicated process and not many tax professionals have experience with how to do that.
Awesome explanation!!
Just dropping comments for the algo King, I definitely need to cop one of your programs though. I’ve been a stock guy for the longest, but I’m ready to throw my hat in the real estate ring 💪🏾
Only question always heard if you file loss to pay less taxes it hurts to show for banks as a good business to be good for a loan ? So is this a good way to declare loss but still get approved for bank loans
If you become a real estate agent can you offset w2 regardless of income vi w2 ?
What about doing 3 to 6 month rentals ? Will this allow us to tap into the benefit for tax deductions from our rentals?
I love this channel and appreciate all the great explanations.
If I do not have a W2 and spend most of my time doing real estate deals. I have a few rental properties some of them I manage myself. Some are in other states with property managers.
Will I be considered a real estate professional?
As I do not have a W2 income. I can use my depreciation on that. But I guess most of my rental profit will be tax free as I will have depreciation plus other costs.
Yeah, if you don't have non-rental income to offset, then there wouldn't really be a reason to try to qualify for real estate professional status. But hours spent on your own rental properties do count towards the qualifying hours. Well, one catch is you probably can't count hours spent on short-term rentals (with an average stay of 7 days or less). Two tax court cases upheld the position that STR rentals aren't a qualified real estate activity to qualify for real estate professional status.
@@tax-modern does looking for a property count towards the 750 hours needed to offset taxes on your w2/1099 before buying the rental property??
@@hipzwhitetower7413 Yes. Keep in mind 750 hours is the minimum number of hours, but also real estate work has to be your primary job, so you can't spend more hours on any other type of work.
@@tax-modern I live with my soon to be wife, do we have to be married to qualify as she will be putting the 750hrs?
@@hipzwhitetower7413 If you want to be able to use her status to help reduce your taxable income, yes.
good explanatoin of passive vs non-passive.
It is 20-30% of the building value on homes and apartments but 100% on shopping centers or business commercial buildings.
Thank you Karlton!
Really, the video starts at 12:30