Women Invest in Real Estate WIIRE 209: Top Tax Strategies Every Real Estate Investor Should Know
Dec 15, 2025
In this engaging conversation, Katie Ripp, a CPA and founder of Momentum Tax Company, reveals essential tax strategies for female real estate investors. She debunks myths about LLCs and details the importance of depreciation to avoid costly mistakes. Katie breaks down how to achieve Real Estate Professional (REP) status and maximize tax benefits through short-term rentals. Learn about 1031 exchanges and how to navigate potential pitfalls. With Katie's expert insights, you'll feel empowered to optimize your wealth and tackle your tax concerns confidently.
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Don't Create An LLC Just For Deductions
- Avoid forming an LLC solely for tax deductions because an LLC is a legal structure, not a deduction generator.
- You get the same rental deductions as a personal owner; weigh state registration costs before creating an LLC.
Depreciation Must Be Addressed At Sale
- The IRS requires depreciation recapture on sale even if you never claimed depreciation during ownership.
- Not taking depreciation hurts you because accumulated depreciation increases taxable gain when you sell.
How To Qualify As A Real Estate Professional
- To qualify as a Real Estate Professional (REP), document 750 hours in real-estate activities and ensure real estate is over 50% of your working time.
- Also materially participate in rentals (100+ hours and more than anyone else or 500+ hours total) to make rental losses non-passive.