There are several different types of income in the US tax code. Two main types are “active income” and “passive income". Active income is money you earn from working, such as wages from a W-2 job or income from running a business. Passive income is money you earn from

Want to turn your primary residence into a rental property? Here’s how in 6 easy steps: 1. Check local regulations. First, verify that your local zoning laws, HOA rules, or condo bylaws permit renting your property. 2. Update your insurance. If they do, inform your insurance

In US tax law, the depreciable lifespan of an asset is defined by its MACRS classification which stands for “Modified Accelerated Cost Recovery System.” Under MACRS, depreciable assets are assigned to different classes, with each class having a specific recovery period. When

One of our clients deferred $257,972 in taxes. Here’s how: In 2018 they acquired a 2,300 square foot retail unit that houses a restaurant for $1,714,580. The law didn’t allow them to deduct the full $1,714,580 against their taxes in year 1, so our team had to figure out the

What happens to your RE portfolio when you pass away? Do your heirs pay significant taxes? This is a common question among real estate owners. Let's dive in: The reality is that wealthy families often pass on real estate assets from generation to generation. For example, if

The playbook on how to use real estate to build wealth tax efficiently: 1. Buy with moderate leverage 2. Cost segregate and depreciate initial capital in 3. Stabilize and borrow tax free against your asset 4. Enjoy low tax cashflow year over year 5. Eventually 1031 exchange into

To qualify as an RE Pro you must: 1. Spend more than half of your total working hours in an RE business in which you materially participate. 2. You must work at least 750 hours per year in a qualified RE business. So most people who have high-earning W-2 jobs outside of real