“By default, real estate investment is considered a passive activity, meaning you're going to get taxed if you make money,” explains Adam Laarsen, CPA. With his expertise, Adam shares the best tax strategies for real estate investors. Whether you are a residential or commercial investor, tune in today for invaluable tips before tax season.
If you have an investment property, it’s essential to keep track of potential deductions. Anything you do to maintain your household could qualify. Whether you are paying for cleaning services, repair maintenance, or even an HOA cost, keeping track of your receipts will come in handy. Although you will always have to pay taxes, you can make the most of your financial benefits as an investor.
Make sure you know all the information before filing your real estate taxes. Learn more about the different strategies for commercial and residential investors, common tax mistakes, and demystifying the 1031 exchange.
- “Real estate investment is probably one of the best strategies outside of getting more money for your property.” (2:57-3:02 | Adam)
- “I would advise everybody to talk to their own tax professional about what basis is.” (8:11-8:17 | Adam)
- “By default, real estate investment is considered a passive activity, meaning you're going to get taxed if you make money.” (13:39-13:48 | Adam)
- “I don't want people to be scared of taxes. I find it unfortunate that in today's education system, people aren't necessarily taught how to prepare taxes.” (31:15-31:28 | Adam)