5 Savvy Tax Moves to Make Before December 31st

5 Savvy Tax Moves to Make Before December 31st

2 min read
Sterling White

Sterling White is a multifamily investor, specializing in value-add apartments in Indianapolis and other Midwestern markets. With just under a decade of experience in the real estate industry, Sterling was involved with the management of over $10MM in capital, which is deployed across a $18.9MM real estate portfolio made up of multifamily apartments. Through the company he founded, Sonder Investment Group, he owns just under 400 units.

Sterling is a seasoned real estate investor, philanthropist, speaker, host, mentor, and former world record attemptee, who was born and raised in Indianapolis. He is the author of the renowned book From Zero to 400 Units and the host of a phenomenal podcast, which hit the No. 1 spot on The Real Estate Experience Podcast‘s list of best shows in the investing category.

Living and breathing real estate since 2009, Sterling currently owns multiple businesses related to real estate, including Sterling White Enterprises, Sonder Investment Group, and other investment partnerships. Throughout the span of a decade, he has contributed to helping others become successful in the real estate industry. In addition, he has been directly involved with both buying and selling over 100 single family homes.

Sterling’s primary specialities include sales, marketing, crowdfunding, buy and hold investing, investment properties, and many more.

He was featured on the BiggerPockets Podcast episode #308 and has been contributing content to BiggerPockets since 2014, with over 200 posts on topics ranging from single family investing and apartment investing to mindset and scaling a business online. He has been featured on multiple other podcasts, too.

When he isn’t immersed in the real world, Sterling likes reading motivational books, including Maverick Mindset by Doug Hall, As a Man Thinketh by James Allen, and Sell or Be Sold by Grant Cardone.

As a thrill-seeker with an evident fear of heights, he somehow managed to jump off of a 65-foot cliff into deep water without flinching. (Okay, maybe a little bit…) Sterling is also an avid kale-eating traveller, but nothing is more important to him than family. His unusual habit is bird-watching, which he discovered he truly enjoyed during an Ornithology class from his college days.

Sterling attended the University of Indianapolis.

Instagram @sterlingwhiteofficial

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The deadline is looming. What smart tax saving moves will you be making before the end of the year?

Winning the money game is as much about minimizing taxes and avoiding wasting money as it is about investing for gains. If you stop the waste and stop overpaying on taxes, you’ll keep more and have a lot more to invest. Here are 5 ways to do that in the next few weeks. Obviously, seeking personalized advice from a CPA is highly recommended. And to be transparent, I am not a licensed tax professional. So please do not take this as professional tax advice.

Contribute to Self-Directed Retirement Accounts

Are you missing out on the tax savings and bonus returns provided by tax protected retirement accounts? Contributing to your 401(k) and IRAs can lower your annual tax burden. By rolling over into a self-directed plan, you can choose your own investments, i.e. real estate. Then your gains become protected from taxes and are able to snowball your returns and wealth. Make sure you are maxing out your allowable contributions before the deadline is up.


Related: Tax-Saving Strategies for Real Estate Investors: How to Pay Less & Keep More This Year

Pre-Pay for Business Items

If you need more deductions and write-offs, look for ways to spend now for what you will need next year. The upcoming holiday sales are an excellent way to compound these benefits by getting what you need for less — and gaining more breaks. This can apply to office supplies, travel, marketing, subscriptions, and related services. For example, maybe you want to redesign your real estate website, but haven’t finished the specs yet. Pay for it and get it started now. You can still polish it in the new year.

Make New Investments

The above also applies to making new investments. Invest bonus money, self-directed IRA funds, and other surplus funds into new investments before the end of the year. If you have liquidated or are planning to sell other investments, then find out about the tax savings a 1031 exchange might offer. I personally do not like seeing too much of my personal capital sitting in the bank. I put it to work in order to make more.  


Related: The Most Flexible & Tax Efficient Way to Structure a Partnership


Real estate investors really shouldn’t be investing without an LLC, S Corp, or other entity to protect their privacy and minimize their tax burden. Too many put it off and then expose themselves to higher tax liability by trying to transfer assets later.

Get Your Accounting in Order

One of the biggest areas of loss for real estate entrepreneurs is failing to keep their books organized. They don’t record all of their expenses and miles. Use all the apps you can to close this loop. You’ll save on tax preparer fees and get the maximum deductions. This is a task I would recommend delegating, as I’ve stated before. Upwork is an excellent resource for finding someone to handle this.

Investors: Which of these tasks will you be performing? Anything you’d add to this list?

Let me know with a comment!