True Tax Advantages of OOS Investing

[Andrew Coulter]

Hi All! As a newbie one topic that I’m really trying to wrap my head around is the tax benefits of owning passive real estate with a W2 job.

From my understanding there are various areas where tax deductions, write offs and depreciation can become an advantage.

Some questions I have are:

Is there any benefit to starting an LLC when it comes to tax write offs and deductions over keeping properties in your own name for the benefit or conventional loans?

In what ways do OOS investors use write offs throughout the year? Can you write off travel, hotels and meals when you go to explore different markets or look at potential properties? Does this only apply when you are going to visit a property that you already own?

What about if your going to meet or vet Turnkey providers or real estate agents?

Does anyone write off home office, internet, cell phone, etc if you are passively investing in addition to a W2 income?

From my understanding you can depreciate your properties over 27 years. You can also deduct PM fees, repairs and mortgage interest. Am I missing anything else here?

Where do you find a CPA in tune with REI investing? Are they local to you or virtual?

Thanks all! Hope this post will help others as I know it will me!

[Daniel Hyman]

Excellent answers above, particularly @Matthew Radniecki. 

Reading one of the well known tax books will hold you in good stead as you couple that knowledge with the support of a CPA. Books are great for general knowledge. Hiring a CPA will help you apply that knowledge to your specific tax scenario.