Hey Investors I have some questions and maybe some of y'all with more experience could point me in the right direction:
1. Wife and I have paid a lot of federal income taxes in 2021 (W2) and was wondering if anyone has any recommendations on structuring taxes (bonus depreciation/upfront depreciation) to get reduce our taxable income. We bought 2 properties this year, one a rental (financed) and one a flip in process (cash). We also have another rental we got in 2020 that in the book's. Are the benefits worth it, what are the drawbacks (FYI these are all sfh).
The other question I have is - I have a company that does home improvements and wondering if I should be using that company to be contracted for my personal home improvements/flips- would structuring this way reduce my taxable income (as the company has operating costs, etc.).
I know my questions are all over the place but my goal is to get some of my 2021 paid taxes back and plan to pay less taxes in 2022. Ideas?
Thanks and Happy New Years to all!
I just purchased these: The Book on Tax Strategies for the Savvy Real Estate Investor & The Book on Advanced Tax Strategies by AMANDA HAN AND MATTHEW MACFARLAND
I haven't read them you but I imagine they have the solutions you're looking for.
One of the goals with rental real estate is that the investment doesn't negatively increase your tax burden.
If you are making other sorts of investments(Stocks or bonds), the dividend/interest income would be taxed at your marginal tax rate(Assumed high).
Rental real estate income hopefully is sheltered.