Tax Saving Strategies for Real Estate Investors with Thomas Castelli | Know your why #311
In this episode, Dr. Jason Balara sits down with tax strategist and real estate investor Thomas Castelli to unravel the intricacies of tax planning in real estate investment. They discuss the benefits of extending tax returns, passive loss banking, and laddering strategies for investors.
Thomas also highlights how real estate professional status can significantly impact tax benefits for couples and explains the effect of local regulations on short-term rentals. The conversation is rounded out with personal reflections on the motivations behind pursuing real estate investment and the drive to build generational wealth.
Key Takeaways:
1. Extending Tax Returns: Real estate investors should anticipate extending their tax returns due to delays in K-1 distribution, which is common in real estate syndication.
2. Passive Loss Banking: Investors can accumulate losses to offset future passive income. These losses can be carried forward and used strategically over time to optimize tax benefits.
3. Real Estate Professional Status: When one spouse qualifies as a real estate professional, couples can leverage this status to offset passive rental losses against active income, providing a significant tax advantage.
4. Local Regulations Impact: Investors must be aware of the changing local regulations on short-term rentals as they can influence the profitability and tax benefits of such investments.
5. Motivations for Investing: Understanding one's personal "why" is crucial for success in real estate and any entrepreneurial venture. Dr. Balara shares his motivation to build generational wealth and encourage others to do the same.
6. Fitness and Health: A healthy lifestyle is vital for maintaining the energy required for entrepreneurial success, emphasizing the need for balance in the pursuit of financial goals.
7. Community Engagement: The episode concludes with an invitation for listeners to engage with the podcast, highlighting the diversity of professionals featured and the insights they offer on the path to success.
Connect with Thomas:
www.thomascastelli.com/taxsmart
@thomascastellicpa (Instagram)
@thomascastelli_ (Twitter/X)
https://www.linkedin.com/in/thomascastelli/
If you want to know more about Dr. Jason Balara and the Know your Why Podcast: https://linktr.ee/jasonbalara
Audio Track: Back To The Wood by Audionautix is licensed under a Creative Commons Attribution 4.0 license. https://creativecommons.org/licenses/by/4.0/
Artist: http://audionautix.com/
Thomas also highlights how real estate professional status can significantly impact tax benefits for couples and explains the effect of local regulations on short-term rentals. The conversation is rounded out with personal reflections on the motivations behind pursuing real estate investment and the drive to build generational wealth.
Key Takeaways:
1. Extending Tax Returns: Real estate investors should anticipate extending their tax returns due to delays in K-1 distribution, which is common in real estate syndication.
2. Passive Loss Banking: Investors can accumulate losses to offset future passive income. These losses can be carried forward and used strategically over time to optimize tax benefits.
3. Real Estate Professional Status: When one spouse qualifies as a real estate professional, couples can leverage this status to offset passive rental losses against active income, providing a significant tax advantage.
4. Local Regulations Impact: Investors must be aware of the changing local regulations on short-term rentals as they can influence the profitability and tax benefits of such investments.
5. Motivations for Investing: Understanding one's personal "why" is crucial for success in real estate and any entrepreneurial venture. Dr. Balara shares his motivation to build generational wealth and encourage others to do the same.
6. Fitness and Health: A healthy lifestyle is vital for maintaining the energy required for entrepreneurial success, emphasizing the need for balance in the pursuit of financial goals.
7. Community Engagement: The episode concludes with an invitation for listeners to engage with the podcast, highlighting the diversity of professionals featured and the insights they offer on the path to success.
Connect with Thomas:
www.thomascastelli.com/taxsmart
@thomascastellicpa (Instagram)
@thomascastelli_ (Twitter/X)
https://www.linkedin.com/in/thomascastelli/
If you want to know more about Dr. Jason Balara and the Know your Why Podcast: https://linktr.ee/jasonbalara
Audio Track: Back To The Wood by Audionautix is licensed under a Creative Commons Attribution 4.0 license. https://creativecommons.org/licenses/by/4.0/
Artist: http://audionautix.com/
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