All Forum Posts by: Todd Harris
Todd Harris has started 1 posts and replied 13 times.
Post: Reduce Taxable Active Income with an Oil & Gas Investment Opportunity
- Southlake, TX (DFW)
- Posts 13
- Votes 5
Reduce Taxable Active Income with an Oil & Gas Investment Opportunity
• Are you a High-Net-Worth Individual (HNWI) looking to lower your taxable income?
• Would you like to apply your investment deductions against Ordinary or Active income (W2/1099) rather than just Passive income?
• Are you a business owner in need of year-end equipment purchases to reduce your tax liability?
• Have you recently completed a Roth IRA conversion and want to minimize the tax impact?
• Did you sell a property this year and missed the opportunity to complete a 1031 exchange?
If any of these scenarios apply to you, I may be able to help. As an Accredited Investor, you have the opportunity to participate in an oil and gas investment opportunity (506(c)) that could reduce your taxable active income, while putting your investment capital to work.
This offering allows you to take advantage of IDC deductions that can offset your ordinary or active income—such as W2 wages or business income—rather than just passive income like rental income or dividends.
This offering is unique in many ways compared to other oil and gas investment opportunities. Specifically, this offering has some of the lowest fees in the industry. It also mitigates risk and diversifies your investment in a number of different ways, which can be much different than other oil & gas offerings.
Reach out today to explore how this tax-efficient investment opportunity can benefit you. Keep in mind that if you are looking for a 2024 deduction, funds must be in by December 31. The new 2025 fund will start on January 1.
-Todd Harris
Post: "I pay Zero Taxes"
- Southlake, TX (DFW)
- Posts 13
- Votes 5
I think you have to also consider where the income is coming from. Does the person in question have a W-2 job and also happens to have investment properties? This would be a tougher situation to “pay zero taxes” than someone whose total income comes from real estate. With the latter situation, you can use utilize depreciation and cost segregation (as mentioned) to offset gains and pay little to no taxes.
Post: Looking for feedback
- Southlake, TX (DFW)
- Posts 13
- Votes 5
Make sure that you are accounting for and understand UBIT. This occurs when using leverage with a SDIRA.
Post: What Exactly is An Accredited Investor?
- Southlake, TX (DFW)
- Posts 13
- Votes 5
Just to clarify, I think you meant the Series 82 (not 62). The Series 82 makes sense because that is the Private Securities Offerings exam.
Post: Southlake, TX, rental market
- Southlake, TX (DFW)
- Posts 13
- Votes 5
Hey Michael,
I live in Southlake and I'm happy to provide my point of view. Unfortunately for this conversation, I only share syndication opportunities with my network and am not in the SFH game. In my opinion, people who rent in Southlake are renting as a way to get into the school system or are renting a house while building another. The lower end homes in Southlake should always be in demand for those two sets of families. We have seen tremendous appreciation over the past 12 years. Feel free to reach out to me if you would like to discuss this further. I'm happy to help in any way that I can. Good luck!
-Todd Harris
Tahoe Blue Holdings, LLC
Andre,
Big disclaimer as I am not an expert at this subject. Trust @Brian Eastman as he has already given you a professional opinion. A couple of questions for you:
-Is your 401K from a previous employer, meaning you no longer work for the company? I don't believe that you can transfer your current 401K over to a SDIRA?
-Are you aware of “self-dealing” and what you can and cannot do? This can be limiting to an Active RE investor.
-Be aware of UDFI if you use leverage (which you should want to).
I have actually been considering rolling my SDIRA into a Roth Solo 401K. This requires a single-owner business but has many advantages IMO. You can still use those funds for RE and there are less restrictions than with a SDIRA. You can even take a loan up to $50K from the 401K, which gets paid back to your account with interest. You can also make annual contributions up to almost $60K because you are contributing both as an employee and employer. This same setup is also available for a spouse.
I still have some homework to do but this is what I am considering. Again, trust the experts but I wanted to give you my two cents.
-Todd Harris
Post: The “Unlucky Seven” Real Estate Investing Mistakes
- Southlake, TX (DFW)
- Posts 13
- Votes 5
Nice article David! I especially like Mistake #2. I agree on your approach to raising capital for your deals. “People do not like to be sold, but they do like to buy”. My mindset is always educating the potential investor on the niche/opportunity. They will ask the right questions if they are interested.
-Todd Harris
Tahoe Blue Holdings
Post: Moving to Dallas, need help
- Southlake, TX (DFW)
- Posts 13
- Votes 5
Sorry, did not tag you in my previous post. @Tom Rip
Post: Moving to Dallas, need help
- Southlake, TX (DFW)
- Posts 13
- Votes 5
I’ve worked with a realtor named Kelly Morgan with Allie Beth Allman before. She is awesome and knows that area very well. I don’t believe she is on BP but easy to find her online. Good luck!
Post: W2 professionals - passive investor or DIY?
- Southlake, TX (DFW)
- Posts 13
- Votes 5
Originally posted by @Tony Kim:
Originally posted by @Jonathan Stone:
Originally posted by @Annie R.:
@Jonathan Stone
Thanks! I was told that MF syndications can pass on losses and write-offs and depreciations to individual investors. Is that incorrect?
You make a good point about writing off your expenses and interest on your REI. Do you go through an LLC or is that a pass through to your individual tax returns?
I don't invest in syndications however it is my understanding that you can take losses or write offs but they would be against Capital Gains income. Within my understand of RE deductions we can deduct expenses from REI from my W2 income. This is actually expanded because my wife works in real estate and there are additional deductions we can take against our active income. All that said I am not a tax expert but am looking to minimize our tax burden while we continue to increase our assets.
We do not currently use an LLC although it is something we may consider in the future.
Hi Annie,
Accelerated losses from syndications do get passed through to the individual LP's. But be wary of any syndicator that tells you that these accelerated losses can be used to offset your W-2 income because that's absolutely incorrect. There is one syndicator who frequently posts here that likes to incorrectly tout that as a benefit and I find that kind of misinformation extremely annoying. In order to be able to offset any of these losses with your W-2, you have to be considered an active participant in the investment. As an LP Investor, you would not qualify. Also, most accredited investors have an AGI greater than 150K, which is another disqualifier. I don't really consider this a downside though because you'll be able to carry-forward these losses to future years and when the syndicator exits the investment, you'll be able to offset these losses against any gains on the sale.
Offsetting your passive losses as an active participant is more for directly held properties (no 3rd party PM) owned by individuals who meet the income limit requirements.
This is not to be confused with someone who can be considered a real estate professional as that's a whole different ballgame.
To your point Tony, PASSIVE losses offset PASSIVE income. W2 (normal job working for someone else) income is not considered PASSIVE income.