My goal for right now is to gain some funds through wholesaling properties and then eventually obtaining a couple rentals in the next few years.

From my experience, most people don’t pay much attention to their tax rate until it’s tax season, but a small percentage are proactive and keep track throughout the year.

ROI and financial gain are truly the best catalysts for solving big problems like housing affordability and availability.

ha ha true--- Loophole is just a more fun word to use and used by my CPA- I think it draws more attention than "IRA Rules" thats just too boring :)

Many syndications provide tax benefits such as depreciation, which can offset income, and some offer favorable capital gains tax treatment when you sell.Municipal bonds are another tax-efficient way to diversify, as the interest earned is generally tax-free at the federal level, and sometimes state level too, depending on where you live.

Jokes aside, I believe @Noah Wright's post brings attention to another issue and that's the smaller investments many capital raisers are seeking.

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Avoid Capital Gains Tax LiabilitySelling your rental property to buy a more attractive one can help you defer capital gain taxes.

Assembly Bill 1771, also known as the California Housing Speculation Act, aims to change real estate tax policy to discourage investors from quickly reselling properties like single-family homes.Under the proposed bill, an additional 25% tax would be imposed on the gain from the sale of a qualified asset (including homes) within three years of the previous sale.The tax reduction is dependent on the number of years passed since the initial purchase of the qualified asset, ranging from a 20% reduction for sales occurring between 3.01 to 4 years to a 100% reduction for sales occurring more than seven years after the initial purchase.The revenues generated by this tax increase would be deposited into the Speculation Recapture Community Reinvestment Fund, which aims to support affordable housing, local governments, schools, and infrastructure projects.The bill is introduced by Assembly Member Ward, and the proposed tax changes would take effect from January 1, 2023.Assembly Member Ward argues that short-term investors in the market, including fix and flip investors, contribute to rising housing prices, limiting opportunities for Californians to purchase homes.While the bill may discourage short-term speculative transactions, it is worth noting that California's tax laws still provide certain advantages for investors, including unlimited tax write-offs and depreciation benefits.The bill is subject to legislative approval, and Assembly Member Ward will speak publicly about the bill at the San Diego County Administration Center on a specified date.Please note that this is a simplified summary of the bill and its potential impact on fix and flip investors.

This way, you benefit from both the immediate gains of flipping and the long-term advantages of rental properties, like tax benefits and appreciation.