How do you save on taxes?

[Tucker Kincaid]

Hello BP!

Just got my first duplex this year and starting to learn the game more. I was wondering ways how you guys save money on taxes? Do you do it yourself or hire a tax professional?

I just watched a recent Bo called tax-free millions. Trying to apply these methods this year.

Thanks

[Nathan Gesner]

You could start by reading "Tax Strategies for the Savvy Real Estate Investor" to get an understanding of the most common deductions. I also recommend you find a CPA that works with real estate investors.

I've always felt something was missing. My CPA could answer my questions, but she never really gave me advice on how to reduce taxes for the coming year. How can I pay $0 in taxes like the big guys? I finally hired a very expensive CPA that helped me develop a strategy. Last year I paid 13.5% in taxes. This year, I will pay 0% despite making 15% more than I did in 2020. My CPA is expensive, but the return is at least 4x what I'm paying her.

Start with the book. Make sure you're hitting all those deductions and you should see a good improvement. As you grow, you may want to consider hiring a tax strategist.