✅Qualify as a real estate professional by spending 750 hours managing an investment property.
🏡Utilize the short-term rental loophole by hosting customers for 7 days or less per stay.
💰Contribute to retirement accounts like a 401K or traditional IRA to reduce tax liability.
⛽Consider investing in oil and gas to create active losses that offset W2 income.
🤝Take advantage of charitable deductions to reduce taxable income and support causes you believe in.
What is the real estate professional status?
—The real estate professional status allows you to deduct real estate losses from depreciation by spending 750 hours managing investment properties and showing that you spend more time on real estate than any other activity.
How does the short-term rental loophole work?
—Hosting customers for 7 days or less per stay in your short-term rental property allows you to offset W2 income using real estate losses without qualifying as a real estate professional.
What are the benefits of contributing to retirement accounts?
—Contributing to retirement accounts like a 401K or traditional IRA reduces your current tax bill and allows your money to grow tax-free until you withdraw it in retirement.
How can investing in oil and gas help reduce taxable income?
—Investing in oil and gas can create active losses that offset W2 income, effectively reducing your tax bill. However, be aware of the legal risks involved and consult with a tax professional.
What are charitable deductions and how do they work?
—Charitable deductions are donations made to qualified 501(c)(3) organizations. By itemizing deductions, you can deduct these donations, resulting in lower taxable income.
02:26Strategy #1: Qualify as a real estate professional by spending 750 hours managing an investment property.
03:51Strategy #2: Utilize the short-term rental loophole by hosting customers for 7 days or less per stay.
04:46Strategy #3: Contribute to retirement accounts like a 401K or traditional IRA to reduce tax liability.
06:00Strategy #4: Consider investing in oil and gas to create active losses that offset W2 income.
06:31Strategy #5: Take advantage of charitable deductions to reduce taxable income and support causes you believe in.
