Tax advisor helping to lower W2 taxes

[Jan Schwoebel]

Hi

I’m looking for a tax advisor or strategist who is familiar with NC taxes (this is where we’re located) and can help us lower our W2 taxes.

We have one long term rental and another property closing soon. So we’re trying to figure out whether we should do a long term or a short term rental and what ways we have to lower our w2 taxes. Also would love to talk about cost segregation.

[Michael Plaks]

@Jan Schwoebel

I have to assume you both have regular W2 jobs. You then cannot lower your taxes with LTRs, cost segregation or not. You may be able to lower them with an STR - for one year only. Then you need to buy another STR the next year, and keep buying.

A bigger issue is your focus on taxes, to begin with. When deciding whether to make your property an LTR or an STR, here is the right sequence of decision making:

1. Which option - LTR or STR - is more profitable in this specific market with this specific property?

2. How much effort/time does an STR require to operate, and am I willing to devote these resources to it?

3. Tax impact.

Don't start with #3 before considering #1 and #2. And read this:  https://www.biggerpockets.com/forums/51/topics/1075919-five-...
and this:  https://www.biggerpockets.com/forums/51/topics/1122635-the-s...