Category: Taxes
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Real Estate Tax Savings: How Cost Segregation Works
Real Estate Tax Savings: How Cost Segregation Works Have you ever been told that the ultra-wealthy folks end up paying little to no taxes? I know I have. The fact is, anybody can benefit from the tax system if they know how to play the game. If I could go back in time (before dental…
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Best Tax Strategies for High-Income Earners [2024]
Best Tax Strategies for High-Income Earners [2024] As a high-income earner, navigating the complexities of a tax strategy is one of the most overlooked aspects of building wealth, especially with the 37% tax rate in 2024. Understanding your specific tax obligations and exploring legal ways to reduce your liability is important, ensuring you maximize your…
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Buy Borrow Die – How Elon Musk Pays Less Taxes Than Doctors
Buy Borrow Die – How Elon Musk Pays Less Taxes Than Doctors More than likely, if you’re a high income earner, then it’s safe to say that you pay the federal government a boatload of taxes each year. But how is it that the richest Americans (i.e. Elon Musk, Jeff Bezos, Warren Buffett, etc.) can…
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Tax Alert: Bonus Depreciation 2023 Phase Out
Tax Alert: Bonus Depreciation 2023 Phase Out Bonus depreciation is a tax incentive for businesses that allows them to accelerate the depreciation of qualified property, reducing their taxable income and providing them with an immediate benefit. Introduced under the Tax Cuts and Jobs Act, bonus depreciation allows companies to write off a percentage of the…
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Real Estate Syndication Tax Benefits For Passive Investors
Real Estate Syndication Tax Benefits For Passive Investors Real estate syndications have become an increasingly popular investment option for high-income earners seeking to branch outside the stock market seeking passive income. While the potential for generating multiple income streams is one of the primary reasons for investing in real estate syndication deals, an often overlooked…
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Step-Up In Basis At Death: What It Means For Your Estate
Step-Up In Basis At Death: What It Means For Your Estate Have you ever wondered how tax planning could benefit you, particularly regarding an inheritance? The “Step-Up in Basis” might be the answer. It’s part of the U.S. tax code that, in simple terms, adjusts the value of an inherited asset to its value at…
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7 Top Tax Benefits Of Real Estate Investing
7 Top Tax Benefits Of Real Estate Investing Investing in real estate has been widely known by the rich as a great way to build wealth because it gives investors a chance to: make passive income (cash flow) diversify their portfolios take advantage of market growth However, one of the often-overlooked advantages of buying property…
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Short-Term Rental Tax Loophole For Physicians and Dentists
Short-Term Rental Tax Loophole For Physicians and Dentists [Editor’s Note: Today’s article is a guest post from my personal accountant Thomas Castelli, CPA. Thomas is a Partner at Hall CPA, PLLC, an accounting firm that helps real estate investors keep more of their hard earned dollars in their pockets and out of the government’s with proactive tax…
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Minimize Tax, Maximize Returns: The Art of Real Estate CPAs
Minimize Tax, Maximize Returns: The Art of Real Estate CPAs Navigating the real estate investing world while balancing a high-demanding profession, such as medicine or dentistry, can be challenging. Throw in managing finances and deciphering the tax code, and it swiftly becomes a jigsaw puzzle. As a busy periodontist and family man stepping into the…
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Cost Segregation Study: How It Works For Real Estate
Cost Segregation Study: How It Works For Real Estate If you decide to invest in real estate, then you’ll quickly realize that you’ll potentially face several costs, such as: purchase price of a property renovation expenses land improvements Fortunately, a cost segregation study can help investors reduce their tax liability and free up cash for future investments.…
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Understanding Passive Activity Loss Rules And Limitations
Understanding Passive Activity Loss Rules And Limitations If you invest in real estate, it’s crucial to pay attention to your property’s financial and physical aspects. And understanding tax regulations is one of those financial considerations. An often misunderstood tax law is how the passive activity loss rules (PAL rules) work. New Passive Investor Circle members often inquire about these rules and…
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Schedule K-1 Tax Form: What To Know As a Passive Investor
Schedule K-1 Tax Form: What To Know As a Passive Investor Tax advantages are one of the primary motivations for investing as a limited partner (LP) in real estate syndications. These benefits are passed on to the LPs through an IRS document called the Schedule K-1 tax form (Form 1065). If you’re in a business partnership, this…
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