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☆ A W-2 employee who used real estate to reduce federal taxes on his $300,000 salary by 99% explains how to pick the right property to qualify for the tax loophole and maximize deductions
▼ + stars: | 2024-03-02 | by ( Laila Maidan | ) www.businessinsider.com time to read: +8 min

By then, he had sold his short-term rental property for a profit, but he still owned other long-term rentals. Therefore, they used the real-estate professional status and bonus depreciation to reduce their taxable income. The main one is through the short-term rental tax loophole (STR loophole). For example, Eileen pointed to Henderson, Nevada, which won't allow a short-term rental permit for a house if there is a permit for an existing short-term rental within 1,000 feet. Deductions would cancel out the taxes owed from the property's revenue, and what is left will reduce your W2 taxable income.

Persons: Michael Hyun, Joshua, Hyun, Eileen Kim, Eileen's, Michael, Brandon Ford, Eileen, Ford, Michael said, you'll Organizations: Business, CPA, IRS, Tax Relief, American Families and Workers Locations: Joshua Tree , California, New York City, San Francisco, Santa Monica , California, Henderson , Nevada, San Jose , California, Alameda County

☆ A W-2 employee explains how he used real estate to reduce federal taxes on his $300,000 salary by 99% — plus a 2-step process to qualify for the deductible
▼ + stars: | 2024-02-17 | by ( Laila Maidan | ) www.businessinsider.com time to read: +9 min

Not everyone qualifies for bonus depreciation deductions by default. “Any property could qualify for accelerated and bonus depreciation,” said Brandon Ford, a CPA and finance director at C3, a real-estate investment firm. Determining the deductibleOnce you qualify for the deduction, you must determine how much you can claim from bonus depreciation. To determine what Michael could deduct, he reviewed his property tax statement, a publicly available record on the county website. In order to qualify for bonus depreciation, he ordered a cost segregation study, which is a third-party service similar to an appraisal.

Persons: Michael Hyun, Eileen, Michael, what’s, ”, Eileen’s, Brandon Ford, Michael said, Ford, ” Ford, Hyun, —, That's Organizations: Business, Bay Area, IRS, CPA Locations: California, Bay, Alameda County

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