How to Qualify for Real Estate Professional Status (REPS) – FULL GUIDE

JOIN THE TAX-FREE WEALTH CHALLENGE NOW! OCTOBER 14-18, 2024!
https://join.taxalchemy.com/join-thechallenge?utm_source=youtube

TAKING THE NEXT STEP:

Join The Tax Strategy Accelerator Community ▶ https://www.taxstrategyaccelerator.com/?utm_source=youtube

Download the Short-Term Rental Rule E-Book! ▶ https://ebook.taxalchemy.com/?utm_source=youtube

Book a Professional Tax Strategy Consultation ▶https://taxalchemyadvisors.com/tax-alchemy-2486

Watch this FREE Webinar on How to Cut Your Tax Bill in Half as a Real Estate Investor ▶ https://join.taxalchemy.com/registration?utm_source=youtube

Get Help Setting up Your LLC, Now ▶ https://shareasale.com/r.cfm?b=617326&u=2911896&m=53954&urllink=&afftrack=

Real estate investors are eligible for some of the best tax breaks in the US tax code. However, there are strict rules for real estate investors when it comes to using real estate losses to offset W-2 income. For example, only people who qualify as “real estate professionals” or who meet certain other criteria such as having a short-term rental can do this.

In this video, tax expert Karlton Dennis breaks down all of these rules and explains how real estate investors can have their spouses qualify for “real estate professional status.” If a couple is married and files jointly, then only one spouse needs to qualify as a real estate professional in order for them both to use real estate losses to offset W-2 taxes.

Real estate investing can not only be a great way to generate powerful cash flow and to experience asset appreciation, but it can also be an amazing way to lower taxes when it is used correctly. So, this video is helpful for anyone who wants to learn how to leverage the real estate tax laws to save money in taxes.

CHAPTERS:
0:00 Intro
0:06 Real Estate and Taxes
0:55 The Two Main Ways to Save Money on Taxes with Real Estate
1:24 Real Estate Professional Status
2:55 The Problem with Real Estate Professional Status
3:56 Spouses and Real Estate Professional Status
4:48 Example of Tax Deductions as a Couple Using Real Estate Professional Status
7:27 The Bottom Line
8:07 Question from a Subscriber!
8:37 Outro

*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.

#reps #realestateinvesting #realestatetaxtips