Real estate with W2

[Brian Walters]

Hello everyone,

My wife and I are going to be starting new jobs. We are in our 20's and we will both be W2. We will be very far into the 39.6% federal level. We were interested in real estate investing to help offset the high tax bill. Can anyone recommend books or resources to understand the tax planning with real estate investing?

Thank you

[Brandon Hall]

@Scott Carder I write off my lattes. I can't do this?

@Brian Walters you are in an interesting position, one that many people on this site cannot relate to. The Rich Dad book several people have mentioned will not help you as the strategies are not aimed at high income/ high net worth individuals. The book will give you a general overview of the tax benefits real estate offers but won't provide you specifically with anything actionable. Therefore it's a waste of time in my opinion.

Without trying trying to sound self-serving, you need a CPA or tax attorney. One who will look into all aspects of your financial life, understand and help you develop your goals, and craft a tax efficient strategy that's good for the next several years. Such a plan can be expensive, but your net present value savings is often much larger (think 10-20x) than the cost of the service. 

You're probably realizing that W2 jobs offer very little in the way of sheltering income. Since you are in the highest bracket, you are hit with all the extra taxes that seemingly come out of the woodwork.

Get a CPA. Don't fool around with the low level resources people are recommending. You want a professional that enjoys reading the tax code and crafting creative strategies.