Advisement on Tax planning

[Zeni Kharel]

Hello all,

I am new to biggerpockets and really excited to have discovered this community!!

I needed the forum's advise on how to reduce taxes.

My husband and I both are high W2 earners. We are moving to Colorado Springs and searching for a home. Neither of us can qualify as Real Estate Professional now or in the future. I have heard about short term renting loophole but we both are absolutely new to the area so leveraging this loophole right now is not an immediate possibility. 

How do we strategize tax planning in the short and long term? We are interested in foraying into real estate eventually.

I would appreciate this forum's expertise. Thank you and thrilled to be here!

Best,

Zeni

[Kevin Kudrna]

Hey Zeni, welcome to Colorado Springs! 

In general, real estate investing offers some strong tax advantages. I highly recommend talking with a tax professional about your goals, and look for the investing strategy that works best for you. 

Regarding short-term rentals, be sure to understand local regulations before investing. If you want to invest in City of Colorado Springs, be aware that it has fairly strict restrictions, while areas outside the city limits in unincorporated El Paso County tend to be much more flexible.