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96: The Biggest Real Estate Tax Loophole You’ve (Probably) Never Heard Of

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Podcast by BiggerPockets
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What if we told you there was a real estate tax loophole that would help you write off most of your income without becoming a real estate professional or going through some precarious property scheme? If you’ve heard stories of wealthy investors making MASSIVE profits through rental properties and walking away with a near-zero tax liability, this could be the strategy that they were using. But, if you want to know what it is and how to use it to your advantage, you’ll have to tune in.

We’ve brought on not one but two financial powerhouses to explain the ins and outs of this rental property tax loophole. Brandon Hall, CPA, and Kyle Mast, CFP, have used this exact loophole to shave their tax liabilities down dramatically. The requirements to take advantage aren’t complicated, but you must be a rental property investor of a specific type of property. And not all CPAs will know how to do this, which is why you must find the right one BEFORE you file!

In this episode, Brandon and Kyle will talk about how to unlock this tax loophole, the requirements you’ll need to hit, the logistics of using it, and the red flags you’ll need to keep an eye out for when giving it a go. In a few simple steps, you could eliminate your income taxes in a completely legal way, BUT you’ll want to make sure you follow Brandon and Kyle’s suggestions to a tee.

In This Episode We Cover

The real estate tax “loophole” that allows you to write off a SIGNIFICANT portion of your income

Real estate professional status and how those that don’t make the cut can still write off BIG deductions 

The requirements you’ll have to hit to realize this real estate tax deduction 

Bonus depreciation, cost segregation, and why NOW is the time to take advantage 

Depreciation recapture and what to do to avoid paying taxes in the future 

Red flags to watch out for when trying this strategy and whose advice you can actually trust 

And So Much More!

Links from the Show

Find an Investor-Friendly Real Estate Agent

BiggerPockets Forums

BiggerPockets Agent

BiggerPockets Bootcamps

Join BiggerPockets for FREE

On The Market

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

Subscribe to The “On The Market” YouTube Channel

Dave’s BiggerPockets Profile

Dave’s Instagram

Kyle’s Twitter

Kyle’s Website

BiggerPockets Money Podcast 200: A Personal Finance Masterclass with Kyle Mast

Connect with Brandon:

Brandon’s BiggerPockets Profile

Brandon’s Facebook Group

Brandon’s Podcast

Brandon’s Website

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-96

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

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