How to Save on Your Taxes as a Real Estate Investor with Amanda Han & Matt MacFarland

Navigating the labyrinth of taxes in real estate investing can be intimidating, particularly for new investors. On this episode of Zen and the Art of Real Estate Investing, Jonathan interviews accounting experts Amanda Han and Matt MacFarland, the brilliant minds behind Keystone CPA. With their combined insights as real estate investors and tax professionals, Amanda and Matt provide guidance on unraveling the complexities of real estate taxes, making it accessible and understandable for investors of all levels. Whether you're just starting or a seasoned pro, their expertise will help you make informed decisions that could save time and money.

Jonathan, Amanda, and Matt delve into the elements of tax optimization, sharing that there is no one-size-fits-all property for investors and the advantages a 1031 exchange can bring to one's tax strategy. They also explore the concept of depreciation, why it’s mandatory for investors, and why it offers a substantial benefit. Amanda and Matt share their thoughts on leverage and address some of the most common tax pitfalls investors encounter.

 

Some of the key takeaways from this episode include:

  • Being a good recordkeeper is one of the main pillars of tax savings. No one likes to keep track of receipts, but you need to be able to track where you’re spending your money to legitimately maximize all of your tax deductions.

  • New investors don’t necessarily need to establish an LLC, especially if you don’t have a lot of net worth or equity in investment properties.

  • Investors should be taking advantage of depreciation. In fact, the IRS requires it.

  • There is no one-size-fits-all property that will give regular investors the best opportunity to save on taxes. Every investment situation is unique.

 

Taxes can be a confusing and frustrating topic for investors, but Amanda Han and Matt MacFarland break it down so that anyone can understand it.

If you want to learn more about Zen and the Art of Real Estate Investing Podcast, check out http://www.trustgreene.com/podcast/zen/071.

Real Estate InvestingJonathan GreeneComment