The Real Estate Professional Status From A Tax Liability To REPS Ability - Dwight Dye
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Jan 31, 2024 Dwight Dye, a tax strategist from DWD Tax Strategies, specializes in helping high-income earners optimize their tax liabilities through real estate. He reveals how contractors can tap into hidden tax advantages they already possess through their real estate activities. The conversation covers short-term rental strategies, proactive tax planning, and the significance of real estate professional status for wealth building. Dye simplifies complex tax concepts, providing actionable insights that transform tax burdens into financial opportunities.
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Pre-Sale Tax Planning Saves Big
- Early in tax planning, consulting about cost segregation for new properties can save hundreds of thousands in taxes.
- A detailed tax strategy before selling assets preserves wealth more effectively than after-the-fact tax offsets.
Entity Setup and Cost Seg Tips
- Ensure your business entity is properly structured to minimize taxes effectively.
- Utilize cost segregation and bonus depreciation when investing in real estate for big savings.
Developer Saved $300K Tax
- A developer planned to sell a 30-unit apartment project and faced a $300,000 tax liability.
- Applying cost segregation saved him $300,000, allowing him to keep the units and pay no taxes that year.