Justin Shore, an EA and expert in real estate investment strategies, joins to dissect various investment routes. They explore direct ownership and the associated tax benefits, comparing long-term and short-term rentals. The conversation dives into syndicates, REITs, and the BRRRR method's tax implications, along with the advantages of 1031 exchanges. Justin emphasizes aligning investment strategies with personal goals and offers insights into navigating the complexities of real estate investments. It's a treasure trove of advice for both active and passive investors!
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insights INSIGHT
Direct Ownership Tax Benefits
Direct ownership of rental properties offers the greatest tax benefits, especially with active management.
Liquidity varies and involves significant market and operational considerations, especially with tenants in place.
volunteer_activism ADVICE
Maximize Rental Deductions
Take advantage of deductible expenses like mortgage interest, utilities, and repairs for long-term rentals.
Actively participate in management to potentially deduct up to $25,000 of losses against non-passive income.
insights INSIGHT
Short-Term Rental Intensity
Short-term rentals are more operationally intensive than long-term rentals but can yield additional tax benefits without real estate professional status.
They require significantly more time management, often 5 times more than long-term rentals.
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In this episode of the Tax Smart REI podcast, Thomas is joined by frequent guest, Justin Shore, EA for the go-to guide to real estate investment strategies.
They break down each strategy, the tax benefits, and the implications.
Topics include:
- The tax advantages of direct ownership and how to maximize deductions.
- The differences between long-term and short-term rentals and the operational and tax considerations.
- Syndicates and funds, REITs, and DSTs as passive investment vehicles, their liquidity, and tax strategies.
- How investment strategies like the BRRRR method and the 1031 exchange can impact your tax liabilities.
- The importance of aligning your investment goals with the right strategy.
Whether you’re a hands-on investor or prefer a more passive approach, this is the episode you want to listen to over and over.
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