BiggerPockets Real Estate Podcast

How to (Legally) Reduce Taxes with Real Estate + Crucial New Trump Tax Plans

35 snips
Jan 29, 2025
Amanda Hahn, a CPA and real estate investor, shares her expertise on tax-saving strategies specifically for real estate investors. She breaks down crucial deductions, such as depreciation, that can save tens of thousands on tax bills. Hahn discusses potential changes in tax legislation from President Trump, including the return of 100% bonus depreciation and uncapped SALT deductions. She also explains how self-directed retirement accounts can be leveraged for tax-deferred real estate investments, helping listeners keep more money in their pockets.
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ADVICE

Real Estate Investors as Business Owners

  • Real estate investors should understand that the IRS considers them business owners.
  • This allows investors to deduct business expenses, opening up new tax-saving opportunities.
INSIGHT

Depreciation Benefits

  • Depreciation is a valuable tax deduction for real estate investors, allowing them to write off building costs over time.
  • This creates a "paper loss" that reduces taxable income, even if the property appreciates in value.
ADVICE

Offsetting Taxes with Rental Losses

  • Rental losses can offset taxes on other income, especially for those earning under $150,000.
  • Consult a CPA for complex situations or advanced tax strategies.
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