BiggerPockets Real Estate Podcast

569: Rich Dad's CPA Shares 5 Steps to Eliminate Income Taxes through Real Estate w/Tom Wheelwright

Feb 10, 2022

Tom Wheelwright, a CPA and advisor to Robert Kiyosaki, shares invaluable insights on tax strategies for real estate investors. He discusses how the wealthy minimize their tax burdens while everyday investors can also benefit. Learn about depreciation, tax incentives versus loopholes, and how to build a systematic investment approach. Wheelwright emphasizes leveraging real estate debt and understanding IRS guidelines to maximize deductions. His practical steps could lead to significant savings and empower investors to grow their portfolios without the tax pinch.

01:28:36

Episode guests

Tom Wheelwright

Highlights

AI Chapters

Episode notes

What's the General Rule for Real Estate Professional?

03:25

Should I Start an LOC to Buy a Property?

01:24

Taxation of Partnerships

01:26

Intro

4min

Essential Tools for Real Estate Investors: Tenant Screening and Financial Management

2min

Tax Strategies in Real Estate Investment

18min

Maximizing Tax Benefits in Real Estate

11min

Navigating Real Estate Taxation and Management

19min

The Essential Role of Insurance in Real Estate Investing

5min

Systematic Real Estate Investing

5min

Maximizing Tax Benefits in Real Estate

17min

Building Wealth Through Real Estate: The Importance of Professional Support

2min

10.

The Value of Professional Guidance in Property Management

5min

If you’re asking your CPA how to not pay taxes, this may be the perfect episode for you. In fact, this episode is geared towards anyone making money in real estate, and listening could save you a massive amount in taxes over your lifetime. But isn’t tax reduction only for the ultra-rich? How can the average, everyday investor who has one, two, or a dozen rentals keep more of their capital so they can invest in more deals?

Tom Wheelwright is the exact man to ask this question to. He’s so good at what he does, that he’s been advising Rich Dad Poor Dad’s Robert Kiyosaki for decades. Tom is dedicated to minimizing the tax burden that he and other investors suffer from. If you’ve read Rich Dad Poor Dad, a lot of Tom’s strategy will sound familiar, but in reality, it’s what all intelligent investors are doing.

In today’s episode, Tom walks through the biggest areas where real estate investors can cut their tax bills, how to generate losses through depreciation, building an investment system, and the five steps to eliminating income tax from your real estate deals. If you make money in real estate, no matter how, this is information you can NOT live without.

In This Episode We Cover:

Why rich investors pay fewer taxes than those who are employed or self-employed

Tax incentives vs. loopholes and why one is risky and the other is celebrated

Where investors can look to greatly reduce their taxable income

How real estate debt gives investors far less risk in their deals

Deprecation, recapture, and how real estate gives you a leg up on income tax reduction

Whether or not you should hold a real estate investment in an LLC

And So Much More!

Links from the Show:

BiggerPockets Website

BiggerPockets Youtube Channel

BiggerPockets Podcast