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Tax, SDIRAs & Cost Segregation

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Greg Tom
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Best Tax Advantages for REI with low 6 figure income?

Greg Tom
Posted Aug 18 2018, 17:59

Hello,

Wanted advice from BP.  I am a big reader over at various 'retire early' sites (Money Mustache, etc.), and have a decently high savings rate after tax.  I am trying to maximize my tax savings through real estate investing.  I know most folks are looking to retire early through passive income, and I wouldn't mind doing that (slowly), but I don't mind my current job.

I currently have a property with two doors (renting at 1,850 and 850), and may be adding a duplex where I house hack one side.  It's in a B+/A area and they are asking 375k (one side rents for 1,700, other for 1,500, but through forced appreciation I could raise it higher).

My focus is a little different than traditional BRRRR. What I'm really looking for are creative ways to reduce my taxes from my W2 job. For background:

1. I max out my 401k, Roth IRA, and HSA (triple tax advantaged) every year. I also do a lot of taxable investing in addition to my little RE ventures.

I'm stuck on what else can be done to maximize my REI for reduced tax gains. I've had numerous repairs done on my properties, and I'll be adding some appliances which should be able to be claimed on taxes this year. Another thought I had was forming an LLC property management company and visiting locations when I commute for my W2 job. Could potentially claim mileage there.

Not sure if others out there are in similar situations with strong W2 income that have found creative ways to maximize returns through taxes in REI? Would love to hear your feedback.

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