Category: Taxes
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Can K1 Losses Offset Your W2 Income?
Can K1 Losses Offset Your W2 Income? One of the top (and most misunderstood) questions our Passive Investors Circle members ask is whether K-1 losses can help reduce their W-2 income. The good news is that for certain types of investors, K-1 losses can offset W-2 income, specifically if they relate to passive activities. Remember that…
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How to Calculate Straight-Line Depreciation: A Simple Guide
How to Calculate Straight-Line Depreciation: A Simple Guide Managing your business or practice’s assets effectively is essential for maintaining financial health. One tool that can simplify this process is the straight-line depreciation method, a widely used approach that evenly spreads the cost of an asset over its useful life. Whether you’re running a small business…
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3 Tax Buckets: Strategies for Retirement Savings
3 Tax Buckets: Strategies for Retirement Savings There are several reasons to invest—one is likely to build wealth and secure a comfortable retirement. However, one important question many forget to ask is, “How can that money be taxed in retirement?” In general, there are three tax buckets you should be aware of while investing. It’s…
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Is Accumulated Depreciation An Asset In Real Estate?
Is Accumulated Depreciation An Asset In Real Estate? Accumulated depreciation is important in real estate accounting because it shows the true financial health of a company. It isn’t listed as an asset on the balance sheet; instead, it’s a contra-asset account that lowers the value of the related asset. This amount shows the total depreciation…
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What is Cost Segregation? A Real Estate Investor’s Guide
What is Cost Segregation? A Real Estate Investor’s Guide Cost segregation is a tax strategy that allows real estate investors to speed up the depreciation of various components of a property, thus resulting in significant tax savings. A cost segregation study is conducted by a specialist (engineering firm or CPA) who analyzes your property and breaks it…
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The Lazy 1031 Exchange: Effortless Way to Defer Huge Taxes
The Lazy 1031 Exchange: Effortless Way to Defer Huge Taxes This article is for you if you’re a real estate syndication (passive) investor looking for ways to defer taxes and offset capital gains. If you’re not sure what a syndication is, check out this video: The answer is something called the Lazy 1031 Exchange. This tax…
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How Does a Quitclaim Deed Work for Tax Purposes?
How Does a Quitclaim Deed Work for Tax Purposes? One document you may encounter when dealing with real estate transactions is a quitclaim deed. This is commonly used to transfer property ownership between family members or close acquaintances without the typical warranties provided by general warranty deeds. Although quitclaim deeds are relatively simple in their…
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Airbnb Tax Loophole: Short-Term Rental Tax Hack
Airbnb Tax Loophole: Short-Term Rental Tax Hack As a high-income earner, finding legitimate ways to reduce your tax bill can seem almost impossible….until now. Certain tax benefits from short-term rentals, such as those from Airbnb or VRBO, offer a strategic loophole that could substantially lower your taxes. This strategy hinges on what the IRS terms…
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The Best Tax-Efficient Retirement Withdrawal Strategies
The Best Tax-Efficient Retirement Withdrawal Strategies One of the BIGGEST worries people have regarding “retirement planning” is running out of money after they quit working. Financial advisors do a GREAT job of “scaring” us into thinking we need to work much longer than we should. Why shouldn’t they? The longer we work and contribute to…
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Common Non-Taxable Income Types You Should Know
Common Non-Taxable Income Types You Should Know It didn’t take long after becoming a dentist to understand just how much the “tax man” taketh from us. Most people spend their entire career focused on earning an income from “taxable” sources. But did you know that there are several non-taxable income types? That’s right, and in…
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The Ultimate Guide to RV Park Depreciation and Tax Benefits
The Ultimate Guide to RV Park Depreciation and Tax Benefits Understanding depreciation is key for any real estate investor, especially when investing in RV parks. Depreciation is a significant benefit that can substantially impact your tax situation. In this article, we’ll cover the basics and take a deep dive into Cost Segregation and Bonus Depreciation.…
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The Ultimate List Of Tax Deductions For Doctors
The Ultimate List Of Tax Deductions For Doctors Recently in the gym, I had a conversation with two medical students. They asked, “What do you recommend we learn now before we start practicing?” These guys are thinking the right way. I told them that their situation was similar to that of pro athletes. They go…
