Suggestions for wealth and tax advisor

4 Replies

Hi there. I am new to real estate investing (just purchased 1st duplex cash with a partner) and am looking for guidance on how I can save the most in taxes and the right path to achieve my investing goals. 

I heard about Wealthability through a podcast, but after searching the forums on here I saw a lot of negative comments about the high cost and bad experiences dealing with that firm. I am looking for suggestions for a similar service that someone has had a good experience with.

Thanks in advance!

With only one duplex your taxes probably aren't that complicated, as long as you take your depreciation and expenses related to the property there aren't really other "secret" deductions you can get, any accountant that knows about rental properties will be perfectly adequate if you don't want to do your taxes yourself.

Originally posted by @Aaron K. :

With only one duplex your taxes probably aren't that complicated, as long as you take your depreciation and expenses related to the property there aren't really other "secret" deductions you can get, any accountant that knows about rental properties will be perfectly adequate if you don't want to do your taxes yourself.

Thanks for the response. I guess I am more so interested in how I can best allocate my income and reduce the taxes on my W2 job, while steering me in the best direction to achieve my real estate investing goals.

Get on your CPA agenda and review the optimum strategy with him. Most CPA will advise some real estate if you are in high tax bracket and paying off debts. A Roth IRA can be converted to RE investment later.

@Tyler Hogan

How did you and your partner acquire the property?
If you acquired it as tenants in common - you would each report your share of income/expenses on your individual tax return.
If you created a partnership - you may be required to file a partnership return. The Partnership will then distribute a K-1 to each investor indicating his share of income/expenses.

The great thing about living in Texas is that you may not be required to file a state tax return as long as the property is within a state that does not have an income tax(Texas, Florida, etc).

If your adjusted gross income is below $150,000 - you can offset the losses from your rental(buy and hold) against your other income(w-2, interest etc).