Hello 

Long term rental income is passive income.  Passive income can only be offset by using passive deductions.  The 900-pound gorilla in the room is depreciation on the real estate.  If you use the deductions and depreciation associated with a rental unit, you can often more than offset your rental income and actually create a loss.

 

The problem is you want to use the loss to reduce your ordinary (W2, 1099, portfolio, etc.) income.  There is a history as to why you can’t use the passive loss against the ordinary income.  I go through that history in my new YouTube video.

 

There are a couple of ways that you can take the depreciation real estate generates (the losses) and use them to offset your ordinary income.  You’ll have to do some work to get to that point.  Basically, you have to change your real estate from a passive income tax activity into a “business.” 

 

Real estate is the only tax shelter that won’t trigger an IRS audit.  They know it is a tax shelter and how it works, and it is 100% legal.  Like Trump or not, he has learned how to use real estate as a tax shelter.  You need to learn the fine points of real estate as a tax shelter. 

 

Ben Rucker, the former IRS special auditor/agent I work with, and I will be covering some of the secrets of real estate tax shelters at our two-day boot camp in May.  Actually, there aren’t any secrets, but the accountants don’t tell you about the nuances, and the accountants often miss them on your tax return, or you didn’t do what needed to be done during the year.

 

Our Asset Protection and Money Making Boot Camp is Friday and Saturday, May 13 and 14 via Zoom.  We only take 15 registrations, so we can interact with everyone.  Register now for the limited time 30% discount.  You can obviously have guests attend with you on the Zoom link, so get with your spouse, a business partner, or even your lawyer.

 

If you are licking your wounds after April 15^th Tax Day, you definitely need to attend.  I’ll guarantee you’ll cut your taxes in 2022, but you’ll have to start now to “create” the tax numbers you hand your accountant next spring.  You can change your tax outcome.  See you at the boot camp.  It’s an Experience!  Register while we still have a seat left.