296. Top Year-End Tax Strategies: Maximize Deductions Before December 31st

Oct 22, 2024

Explore savvy year-end tax strategies specifically designed for real estate investors. Learn about the benefits of purchasing short-term rentals and how to leverage the short-term rental loophole. Discover ways to maximize vehicle deductions, especially for heavier vehicles. Gain insights on qualifying for real estate professional status and the importance of cost segregation. Plus, find out how to effectively implement tax loss harvesting, prepay expenses, and ensure proper documentation for contractors to boost your deductions before the year closes.

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ADVICE

Short-Term Rental Strategy

Consider buying a short-term rental before year-end to maximize tax deductions.
Ensure you meet the qualifications for the short-term rental loophole, including guest stays and time logging.

ADVICE

Vehicle Deduction

Maximize vehicle deductions by purchasing a vehicle with a gross vehicle weight rating of 6,000+ pounds.
Use it primarily for business to qualify for bonus depreciation, especially near year-end.

ADVICE

Real Estate Professional Status Tips

Ensure your time log is accurate and up-to-date for real estate professional status.
Place investment properties in service by year-end to take advantage of bonus depreciation.

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In this episode, Thomas and Ryan break down year-end tax strategies tailored for real estate investors, providing valuable insights for maximizing tax savings before the year ends. Here’s what they cover: - The advantages of buying a short-term rental before year-end and how to qualify for the short-term rental loophole. - Maximizing vehicle deductions, including the benefits of buying a vehicle with a gross weight of 6,000 pounds or more. - Key strategies like cost segregation timing and real estate professional status. - Common but crucial year-end tax tactics like prepaying expenses, bookkeeping, and tax loss harvesting. - The importance of ensuring you have W9s from contractors and reviewing your entity structure. If you’re looking for more actionable tax strategies to implement before the end of the year, register for our Year-End Tax Impact event here: go.therealestatecpa.com/3zVWP7E To become a client, request a consultation from Hall CPA, PLLC at go.therealestatecpa.com/3KSEev6 Join the Tax Smart Insiders Community: go.therealestatecpa.com/3Xx1Cpd Checkout Thomas's new YouTube channel: www.youtube.com/@thomascastelli The Tax Smart Real Estate Investors podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests.