Saw a person who made over $300,000 from their W-2 job. They paid less than $4,000 in taxes because they're a real estate investor with short term rentals. There's special tax loopholes with short term rentals. The more we learn the tax code, the more real estate we want.
@theficouple This is terrible “advice” to give to your followers High chance of audit and unless you have clearly met the very specific criteria (and can document it) you are going to have to pay back taxes with penalty and interest
@theficouple What is this loophole? Do you have a link or any reference?
@theficouple Real estate has more tax advantages than any other asset class. By far.
@theficouple lol all you have to do is exempt yourself taxes are 100% voluntary you don’t need any loopholes you need some common sense
@theficouple The best tax advice I can give to real estate investors is don’t look for advice on social media but consult with a trusted advisor: ask your accountant.
@theficouple If they have a non-RE related W-2 and are claiming real estate professional status on their taxes, they’ll have a rude awakening when the audit comes in. And it’s coming.
@theficouple So they lost their ass on their short term rentals. Is that really a flex?
@theficouple I should get a short term rental just for that … but who would manage it. I work full time everyday
The one thing I could think of is the spend so much on the short term rentals or have a very big loss that it offsets their income as a sole proprietorship and not 100% that is a situation I want to be in. Beyond the mental headache of losses adding up I’d would rather invest in Nvidia , weight loss drugs the future and write covered calls to collect dividends. Much less headache
@theficouple I paid over 200k annually in taxes the past 5 years