All Forum Posts by: Matthew Schumacher

Wow, that’s incredibly frustrating—and you’ve shown a lot of patience navigating it all. Given the breakdown in trust and lack of cooperation, it might be worth cutting losses and moving forward with a new tax preparer, even if it means extra cost now. Peace of mind is priceless, especially with something as critical as tax compliance. That said, you might still want to explore a formal complaint or refund request via your state CPA board or bar association if only to document the pattern. Sorry you’ve had to go through this.

Great breakdown—totally agree it’s not one-size-fits-all. 

We can help you out. Send me a message or call. 

BiggerPocket has a great Tax Finder tool that might be a good place to start if you're looking for vetted professionals. Just out of curiosity—does it need to be someone local to Maricopa due to a personal preference, or is there something specific you're needing local insight on? Sometimes remote advisors can still be a great fit depending on the situation. Let me know what you're looking to structure and I can try to offer more targeted suggestions!

Absolutely love this post — solid overview of strategies that can really move the needle when you’re being intentional about growing your real estate portfolio and minimizing taxes.

Here are a few other approaches we've seen clients lean into, or that we're actively exploring:

Bonus Depreciation + Cost Segregation

When used together, these two can create some serious tax savings. We’ve seen people slash their taxable income in year one by accelerating depreciation. It’s especially useful to look at now while bonus depreciation is still phasing down.

Using Passive Losses to Offset Income

If you can qualify as a real estate professional, that opens the door to using passive losses (like the ones from depreciation) to offset regular income. This can be a major tax break for high-income earners who are also active in their portfolios.

Smart Entity Structuring

Setting up the right legal structure can do more than protect your assets — it can also help with tax planning. For some investors, holding properties in LLCs and running operations through an S-corp helps with income splitting, deductions, and even health benefits. Definitely something to review with a CPA who knows real estate.

Capital Recycling with HELOCs & Infinite Banking

Instead of letting equity sit idle, some folks are using HELOCs or cash value life insurance policies to move capital more efficiently between deals. It’s all about maximizing velocity — using the same dollar in multiple places over time.

Charitable Remainder Trusts (CRTs)

If you’re looking at a big exit, a CRT might be worth looking into. It allows you to sell appreciated assets without paying capital gains upfront, generate ongoing income, and eventually donate to a cause you care about. Not for everyone — but it’s a powerful tool in the right hands.

Totally get where you're coming from. HELOCs and velocity banking can be game-changers if used with discipline and a clear plan. It's unfortunate how often these tools get dismissed just because they’re misunderstood or misused.

You're also spot on with "I don't know what I don't know" — that’s exactly the mindset that leads to growth.

A few other strategies that might be worth exploring (depending on your goals and risk tolerance):

• Cash value life insurance (e.g., infinite banking) – Similar to HELOCs in that you can borrow against it to fund investments while still growing cash value.

• Business credit stacking – Building business credit separately from personal to access 0% interest funding for asset acquisition or growth.

• Self-directed retirement accounts – Using IRAs or solo 401(k)s to invest in real estate, private lending, or other alternative assets.

• Accelerated depreciation strategies (like cost segregation) – Big tax benefits if you own real estate.

• Creative financing techniques – Subject-to, seller financing, wrap mortgages, etc. often overlooked but very powerful.

If any of those are on your radar or you're experimenting with something else, would love to trade notes. Always looking to learn from others doing smart things that the mainstream ignores.

Absolutely agree — the potential is massive.

Right now, I’m exploring a few simple but powerful ways to use AI in real estate investing:

• Property scouting: Using AI + public data to surface areas with high permit activity, low crime, good schools — then overlaying maps to find sweet spots.

• Pricing analysis: Running AI models on list-to-sale ratios, DOM (days on market), and price trends to spot undervalued areas or neighborhoods heating up.

• Quarterly performance check-ins: Feeding financials into AI tools to flag underperformers or cash flow issues before they become a problem.

• Tax and financing optimization: Starting to test AI advisors to suggest tax strategies and compare loan terms — way faster than doing it manually.

I’m also looking into setting up automations that pull in fresh data monthly — AI works best with up-to-date info.

Totally agree — the earlier we learn and integrate, the more of an edge we’ll have. Curious what others are doing too!

Hi Charles, because the sale was considered completed 3.5 years ago and you met the ownership and use tests for the home sale exclusion, you would not owe additional capital gains tax upon receiving the full payoff from the buyer's resale. The interest you received during the installment period is taxable as ordinary income, but the principal payments, including the final payoff, are not subject to additional capital gains tax.  
​Internal Revenue Service

Great breakdown on cost segregation and how it can be a powerful tool for increasing cash flow! Many investors and STR owners miss out on this strategy simply because they don't realize how much of their property can be reclassified for shorter depreciation schedules.

A few additional things to consider:

✅ Bonus Depreciation: Did you know that cost segregation studies can be even more powerful when paired with bonus depreciation? While recent tax law changes have started phasing it down from 100%, it’s still a great way to accelerate deductions.

✅ Partial Asset Disposition: If you've made upgrades to your property (like replacing old HVAC, flooring, or lighting), a cost segregation study can help you write off the remaining basis of those old assets in the year you replace them.

✅ STR Tax Loophole: If your STR qualifies for material participation, your cost segregation study could help offset W2 or active income, unlike traditional long-term rental passive losses. This is a huge tax advantage for STR investors!

Hey there! It’s great that you’re being proactive about tax strategy—there are definitely ways to optimize and legally minimize what you owe. A strong CPA who understands STRs (Short-Term Rentals) and real estate tax strategies can be a game-changer. Look for someone well-versed in:

✅ STR Loophole – Unlike traditional rental real estate, STRs can qualify for material participation rules, allowing for potential active losses to offset W2 income.
✅ Cost Segregation Studies – Accelerated depreciation can help shelter income in the right circumstances.
✅ Entity Structuring – The right entity setup (LLC, S-Corp, or even a hybrid structure) can impact tax efficiency.
✅ Tax-Advantaged Retirement Strategies – Combining real estate with SEP IRAs, Solo 401(k)s, or even Defined Benefit Plans can help defer or reduce taxes.
✅ Deductions & Write-Offs – From travel expenses (legit business purposes) to home office deductions, it’s all about maximizing what’s legally allowed.

I’d be happy to dive in to more specifics with you. Feel free to DM me!"