Just in time for tax season—The Book on Advanced Tax Strategies!

35 Replies

My husband and I are just starting out in real estate investing, we have done a ton of reading and listening to this podcast. We recently spoke with a CPA who said she has 24 years experience, but doesn’t specialize in real estate, however has a handful of clients who do own investment property. She made this statement: you want to have some properties that are winners and some that are losers when it comes to your taxes, to balance it out.

Is this a valid statement? Wouldn’t we want all of our properties to produce cash flow?

@Teresa Thomas , you want to show paper losses due to things like depreciation, but you do NOT want to actively be losing money in real life. If you're investing in real estate, you need a CPA who KNOWS real estate.

Originally posted by @Teresa Thomas :

My husband and I are just starting out in real estate investing, we have done a ton of reading and listening to this podcast. We recently spoke with a CPA who said she has 24 years experience, but doesn’t specialize in real estate, however has a handful of clients who do own investment property. She made this statement: you want to have some properties that are winners and some that are losers when it comes to your taxes, to balance it out.

Is this a valid statement? Wouldn’t we want all of our properties to produce cash flow?

 Ehhhhh no


You never want to LOSE money on a property for taxes. That's a bad plan. 

You do want to diversify your rentals. 

Have some that cash flow more than others, and maybe don't end up at a loss vs. some that are more appreciate markets which will likely toss off big losses due to depreciation. 

A $40k house that rents for $1k a month vs. a $100k house that rents for $1k a month.

Got my copy, read it cover to cover. Although I understood the "real estate professional" designation, I knew I could not qualify. However, the book helped me understand the spousal connections and I am off on a new strategy with my wife to qualify her. Very well written and engaging, several nuggets of new information. Highly recommend it.

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