All Forum Posts by: Brian Walters

I think I might have not been clear in the first post... my intention was to ask about tax planning / retirement strategies for those in a high tax bracket.. rather than offsetting a high income by writing things off. I have no interest in any "grey areas" or "fibbing" on write offs. However, my understanding was that a legitimate LLC for either flipping or renting properties is a good way to plan long term, reap some benefits from expenses and depreciation and perhaps eventually transition from a W2 job and live off the investments during retirement. Sorry for the confusion.

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Originally posted by @Scott Carder:

You should make money on the rentals, the idea of saving money on taxes with your current non-real estate income is impossible, unless you lose money or fib write-offs. Yeah I know some people think you can write of a latte.

I agree. I don't really have interest in writing off things like dinners, lattes, etc.

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Originally posted by @Rafael Norat:

Hey Brian. Look up Tom wheelright I believe. He's the rich dad poor dad accountant and has some good books on how real estate investing can help offset your taxable income losses.

Will look into it - thank you.

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Originally posted by @John Thedford:

@Brian Waltershaving a business is always helpful. You can run all your expenses through it which helps with keeping books and documentation. You can get so many writeoffs such as postage, computers used to run the business, mileage, supplies, educational expenses..the list goes on and on. Find a good CPA to help. Don't play games...the IRS frowns on those but DO make sure and document every legitimate expense.

Right. I have no interest in being in any grey areas. Just thinking of creating some additional income with the added benefit of some smart tax planning. Being a W2 has its downsides!

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Originally posted by @John Thedford:

My income is rising every year due to RE investments. You do get a small shield with depreciation. If you have high income, certainly look at contributing to an IRA or 401K to defer some taxes.

John - we will be contributing everything we can to 401k, 457b, HSA, etc. Since we are on W2, I think having an LLC with real estate investments may help offset the high tax rate by increasing deductions available even as income rises.

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Originally posted by @Larry Turowski:

@Brian Walters real estate will not offset your high tax bill unless you are losing money--except possibly by gaining in appreciation while losing in claimed depreciation and expenses.

I always get a kick out of how people think businesses that are really losing money actually want to be doing that. No. No they don't.

Thank you for the reply. I do not wish to have a company lose money. However, real estate as a investment opportunity, via an LLC or other corporation can indeed help lower W2 based tax burden by opening new write off opportunities. This can be in a way that placing post tax money into mutual funds or stocks do not. Just looking for resources.

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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

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All Forum Posts by: Brian Walters

Brian Walters has started 1 posts and replied 8 times.

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