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Updated over 8 years ago,
Shielding Cash Flow
Good day,
Wanted to reach out and get some feedback on a particular topic of cash flow. Since the tax season is coming to a close I had a question on how to shield or protect your annual cash flow from being considered additional income on your tax returns. Throughout the years an investor racks up additional income while purchasing and renting investment properties but paying a mortgage which helps some write off. My question to all you investors who own property free and clear, what strategies can be taken and how does one keep and shield/hide annual income come tax time. If you own multiple properties and they bring in 50-60K annually from rent income this will put you in a high tax bracket and get the shaft at the end of the year. I get you can report whatever you want in the end but at some point the number has to make sense. You could not say that you lost 40K every year on a property and not raise flags correct? I guess after all the rambling I am asking what can I do about having 150k additional income at the end of the year and not be taxed up the A#$ every year in April?