W2 earned income to real estate investing.

[Marek J.]

Hello, I like my w2 job. I also want to invest in multi family real estate. How would keeping my normal job affect my taxes? I want to essentially invest all money earned from my regular job and invest into real estate. As real estate is a business would this reduce my tax liability on the regular job? They always talk on the podcast how you invest in your business.

Would buying real estate and investing in my real estate reduce my tax liability on the earned income? Essentially as I invest the money from my day job I don’t have it so I shouldn’t be taxed on it.

Any ideas would be appreciated.

Thank you

[Natalie Kolodij]

Originally posted by @Michael King:

@Natalie Kolodij @Basit Siddiqi

You mention $150K threshold on W2. I make more than that on my W2, but my wife makes nothing (stay at home mom) but we file married filing jointly. Is there a higher threshold in that instance. 

Sorry @Marek J. I didn't meant to hijack your thread.

 Nope still $150k unfortunately 

But if your wife doesn't work and she's who manages your properties talk to your tax professional about potentially qualifying for RE professional status with the IRS.