14:04 for Chandler's tax minimization strategies. One note is that Cost segregation works well only at certain property values, otherwise the cost of the analysis ends up being more than your upfront tax savings!
Any commercial or investment property woth over $200K is worth at least looking at for Cost Segregation. Anyone can get a free estimate of cost/benefit for their specific property at davidwiener.costsegregationservices.com/cost-segregation-estimate
Great tips...Please go more in depth of these tax strategies as it will help like minded individuals (aka. You're audience) save money withntheir investments & keep them coming back for more content. Please, do a video on reas estate Write-offs, as it is year end...Thank you!
has anyone ever used a 1031 exchange to sell a property from one LLC to another LLC that you still control, and therefore, reset the depreciation for the new LLC, and also still own the property? is that a thing? is it legal?
Chandler, I have a hypothetical I want your opinion on. Say you have a property and the mortgage is about to mature and be paid off. In my opinion, you have a few options: 1. Hold it for the cashflow 2. Sell it and put the money towards something else 3. 1031 exchange it. 4. I would like your thoughts on this one. Using HELOC loans as leverage and down payment towards other properties. I am curious what your strategy would be
Question. If all my tenant's rent goes to paying off the mortgage do I pay tax on any portion of the rent received? Or is it just the left over money (cash flow) that is considered for income tax?
The more I invest in real estate, the more logic I see behind the tax loopholes. I'm reinvesting everything I'm making in real estate and that money goes to improving my properties and acquiring more properties. That's meant tens of thousands of dollars going to local contractors and businesses just this year. Renters also benefit since most of the properties I buy are kind of rough before I rehab them. I have a hard time imagining the government would use my income more efficiently.
Contribution Limits for IRA are actually $6000, not $5000. Also important to make a distinction between a convention IRA and a Roth IRA. Conventional IRA the money is locked up. Roth IRA you can pull all the money out that you put in. You just can't pull the profits of the money. Problem is Roth IRA doesn't safe you any taxes off the bat....
Yes. Interest paid on a mortgage used to purchase rental property is considered a business expense and would be deducted on your Schedule E when filing taxes. See Sch E Line 12.
Thoughts on taking out debt to pay taxes on my stocks?? Rather than selling the stocks and having to pay the short term gains again the following year? Would it be better to take out a loan to pay the taxes then wait until the stocks qualify for short term gains and then pay off the debt??
The real question is why do you have taxes due on your stocks? You must have sold something or got a dividend. If you just hold your stocks (which it sounds like is what you want to do) then you won't owe any tax.
Are there accountants that specializes in rental property or investments, for this type of stuff? Or should any accountant know how to do these things?
Hey chandler, If you run out of depreciation you don’t have a huge sum you have to pay but rather would just have to start giving the government a portion of your income you are making going forward correct?
Heath Q is right again. You would only have a huge sum of tax to pay when selling the property, as the basis would have been depreciated to zero. After fully depreciating a property, the total sales price will be considered a combination of depreciation recapture and capital gain, all of which is taxable at various rates.
Well there's a reason you have $13million worth of Real Estate. I don't know of many people at all who have $13million in IRA's. I actually recently liquidated my Roth IRA to buy more real estate. So glad I did because I will make way more money than I ever will in that IRA.
If that Roth IRA was self directed you could of invested in real estate within your Roth without having had to liquidate and lose the long term tax benefits. It’s late now, but something to consider in the future Research SDIRA and Solo 401K
@@NewProvidenceUF I would never buy a house with a Roth IRA/SDIRA or whatever else. Probably the biggest waste of time ever. I can't touch the cash-flow to reinvest and compound and my income is tax free from Real Estate so I don't pay taxes anyway on anything. So because I don't pay taxes on my Real Estate that completely negates any benefit the Roth offers. And now I'm stuck without any cash flow from the house to change my life now and buy more houses outside of the Roth.
@@jordanroberts7931 Because you want to sell and spend the money instead, idk, its personal finance, there are any number of personal reasons you might sell. And if you ever do cashout, there will be capital gains taxes outside of the Roth.
Would you rather keep a portion of the money while sending another portion to Uncle Sam... or would you rather buy stuff that you want/need, and not send a single dime to the US government?
@@7133763133 Honestly, I'd rather keep 65% of my money rather than wasting it on something that I realistically don't need. You don't get rich by spending money.
Hey, bro according to the market condition where do you think is the best city to invest in if you are a first-time buyer and who wants to be like you in the future? I have saved up 100,000 .
Hey I am seeking help on what the best course of action for me to take come tax time. I have a rental property that generates 60,000 income 40,000 expenses. If I claim this will I be paying a fortune at the end of the year on taxes. ?
Not enough information. If that is all you have and your MFJ then you won't owe anything. But you most likely have a lot of other things that will effect your tax situation. I'm bias but I would recommend you hire a good CPA.
No. As Heath Q says, there really isn't enough info here. But worst case scenario is you are profiting $20,000 and would owe taxes on that amount. My guess is your $40k in expenses doesn't include depreciation though, so your additional taxable income would probably be less than $20k. My guess is this would add around $2000 to your income tax bill. If you don't know how to determine this, you need a tax advisor or CPA.
Chandler, love your content and real estate strategies, as well as your super cars (only for your channel, not as an investment strategy). That being said, I believe parking money in the stock market until you find the right real estate deal is a terrible idea. The stock market is highly volatile - it’s not a high yield savings account (I.e. it can go down).
I have a disability and every month the government give me a check but if I get a job they will take the check away and I want to be a RUclipsr I want to avoid paying taxes
Actual tax avoidance strategies start at 14:00
🐐🐐
Thanks!!!!!!! 😅😅😅
The tax benefits are one of my favorite aspects of investing in buy and hold properties!
14:04 for Chandler's tax minimization strategies.
One note is that Cost segregation works well only at certain property values, otherwise the cost of the analysis ends up being more than your upfront tax savings!
Any commercial or investment property woth over $200K is worth at least looking at for Cost Segregation. Anyone can get a free estimate of cost/benefit for their specific property at davidwiener.costsegregationservices.com/cost-segregation-estimate
How I avoid paying Taxes Every Year ...explanation starts at 14:05
Thank you.
Your FBI agent opened this video so fast
Hahahah
Correction IRS Agent
Please make more in depth videos like this, every channel does the basic stuff. We like the deeper knowledge
Great tips...Please go more in depth of these tax strategies as it will help like minded individuals (aka. You're audience) save money withntheir investments & keep them coming back for more content. Please, do a video on reas estate Write-offs, as it is year end...Thank you!
Your in-depth videos are really informative and I hope you do more (fairly specific) content like this in the future.
I asked meet Kevin to do a year end tax video and he said no. Thanks CDS!
For sure 👊🏻
Because Kevin is better than us all 🤣
He is too busy reporting on the $600 stimulus checks 2x a day
Let's be honest Kevin's stimulus videos are making him 5x as much as real estate videos. He still does them but it's not his main gig anymore.
Great video! Soooo close to the 100K subs my man! Inspirational.
Residential property is depreciated at 27.5 years before a cost segregation study.
Thar was driving me crazy as well.
has anyone ever used a 1031 exchange to sell a property from one LLC to another LLC that you still control, and therefore, reset the depreciation for the new LLC, and also still own the property? is that a thing? is it legal?
Depreciation is 27.5 years.
Chandler,
I have a hypothetical I want your opinion on. Say you have a property and the mortgage is about to mature and be paid off. In my opinion, you have a few options:
1. Hold it for the cashflow
2. Sell it and put the money towards something else
3. 1031 exchange it.
4. I would like your thoughts on this one. Using HELOC loans as leverage and down payment towards other properties.
I am curious what your strategy would be
He would pull out the equity for a new deal.
Chandler, would you mind showing us what books you have behind you besides Rich Dad Poor Dad. (Great Book!)
I enjoyed the deep dive and would love to see more!
Question. If all my tenant's rent goes to paying off the mortgage do I pay tax on any portion of the rent received? Or is it just the left over money (cash flow) that is considered for income tax?
Solid information none-the-less. God Bless you Man.
How does the IRS deem you? You are a real estate professional (750hrs annual) that owns commercial real estate so you have alot you can write off
if you file taxes and break-even, can commercial lenders still qualify you if the property qualifies? doesnt look like fannie/freddie can, right?
I like to look at an IRA as my safety net. If all of my other investments blowup, ideally I'd have something there for when I'm in my 60s.
The more I invest in real estate, the more logic I see behind the tax loopholes. I'm reinvesting everything I'm making in real estate and that money goes to improving my properties and acquiring more properties. That's meant tens of thousands of dollars going to local contractors and businesses just this year. Renters also benefit since most of the properties I buy are kind of rough before I rehab them. I have a hard time imagining the government would use my income more efficiently.
Contribution Limits for IRA are actually $6000, not $5000. Also important to make a distinction between a convention IRA and a Roth IRA. Conventional IRA the money is locked up. Roth IRA you can pull all the money out that you put in. You just can't pull the profits of the money. Problem is Roth IRA doesn't safe you any taxes off the bat....
How I Avoid Taxes: Hire a great CPA.
My question is how are you qualifying for these properties if your writing everything off on your returns ?
Losers: that’s unfair Tax him!
Me: that’s awesome man I’m willing to listen
Investments are the stepping stone to success, investing is what's creates wealth
Recently, I invested in both stock and crypto but currently I believe that crypto is the new gold
Investing in crypto is the only best way of making money
For real it's very profitable
@Donald Hilton of course stock is good but crypto is far better
Isn't the interest on a mortgage also a tax deduction?
Yes. Interest paid on a mortgage used to purchase rental property is considered a business expense and would be deducted on your Schedule E when filing taxes. See Sch E Line 12.
Super video!! Knowledge is key!
I love the tips man!
Good! Thanks!
This is the RE content I come for!
Thoughts on taking out debt to pay taxes on my stocks?? Rather than selling the stocks and having to pay the short term gains again the following year? Would it be better to take out a loan to pay the taxes then wait until the stocks qualify for short term gains and then pay off the debt??
The real question is why do you have taxes due on your stocks? You must have sold something or got a dividend. If you just hold your stocks (which it sounds like is what you want to do) then you won't owe any tax.
Nice tips! Thanks man!
Are there accountants that specializes in rental property or investments, for this type of stuff? Or should any accountant know how to do these things?
Yes! I know one. Contact me and I'll get you his contact information.
I can't wait to be on your channel one day explaining how I implement these strategies ;)
Really helpful!!! Thanks 🙏
If no one pays taxes.. who makes the roads in the US?
Most work a w2 job…
Hey chandler,
If you run out of depreciation you don’t have a huge sum you have to pay but rather would just have to start giving the government a portion of your income you are making going forward correct?
Correct
Heath Q is right again. You would only have a huge sum of tax to pay when selling the property, as the basis would have been depreciated to zero. After fully depreciating a property, the total sales price will be considered a combination of depreciation recapture and capital gain, all of which is taxable at various rates.
Thanks guys!! I was confused why he kept saying accelerated depreciation was risky!
Guys! Chandler bought a rental house with jack Doherty. Jack said it in his podcast with graham Stephan!!!!
Okay and?
@@antesvlogs1384 the point is to ruin any video ideas he had about this topic
@@shreygaming2333 really? You’re a hater
Well there's a reason you have $13million worth of Real Estate. I don't know of many people at all who have $13million in IRA's. I actually recently liquidated my Roth IRA to buy more real estate. So glad I did because I will make way more money than I ever will in that IRA.
If that Roth IRA was self directed you could of invested in real estate within your Roth without having had to liquidate and lose the long term tax benefits.
It’s late now, but something to consider in the future
Research SDIRA and Solo 401K
@@NewProvidenceUF I would never buy a house with a Roth IRA/SDIRA or whatever else. Probably the biggest waste of time ever. I can't touch the cash-flow to reinvest and compound and my income is tax free from Real Estate so I don't pay taxes anyway on anything.
So because I don't pay taxes on my Real Estate that completely negates any benefit the Roth offers. And now I'm stuck without any cash flow from the house to change my life now and buy more houses outside of the Roth.
@@jordanroberts7931 You might wish you had left it in the Roth whenever you decide to sell someday.
@@shakysliders1689 Why would I ever sell a cash-flowing asset? And even if I did sell I'll just 1031 exchange it. Guess what? Still no taxes.
@@jordanroberts7931 Because you want to sell and spend the money instead, idk, its personal finance, there are any number of personal reasons you might sell. And if you ever do cashout, there will be capital gains taxes outside of the Roth.
Thanks bro very helpful!
Enjoyed it!
I try to explain this to people all the time. Spending money to get a "write off" is *STILL SPENDING MONEY* LOL. It's not some magical free money.
Would you rather keep a portion of the money while sending another portion to Uncle Sam... or would you rather buy stuff that you want/need, and not send a single dime to the US government?
@@7133763133 Honestly, I'd rather keep 65% of my money rather than wasting it on something that I realistically don't need. You don't get rich by spending money.
Hey, bro according to the market condition where do you think is the best city to invest in if you are a first-time buyer and who wants to be like you in the future? I have saved up 100,000 .
Please one video about interest only ❤️
It was very good however, it still leaves me with trying to understand how cost segregation works.
Legal avoidance of taxes is my middle name
Good info. Just use another catch instead of "Tax Avoidance"....
Hey I am seeking help on what the best course of action for me to take come tax time. I have a rental property that generates 60,000 income 40,000 expenses. If I claim this will I be paying a fortune at the end of the year on taxes. ?
Not enough information. If that is all you have and your MFJ then you won't owe anything. But you most likely have a lot of other things that will effect your tax situation. I'm bias but I would recommend you hire a good CPA.
No. As Heath Q says, there really isn't enough info here. But worst case scenario is you are profiting $20,000 and would owe taxes on that amount. My guess is your $40k in expenses doesn't include depreciation though, so your additional taxable income would probably be less than $20k. My guess is this would add around $2000 to your income tax bill. If you don't know how to determine this, you need a tax advisor or CPA.
One word.
Real estate investing.
Let’s go!!
Check your math there
@@spenceredwards9574 no
Ok good brother TNX
Great tips!
Good information
Chandler, love your content and real estate strategies, as well as your super cars (only for your channel, not as an investment strategy). That being said, I believe parking money in the stock market until you find the right real estate deal is a terrible idea. The stock market is highly volatile - it’s not a high yield savings account (I.e. it can go down).
I just shred my taxes. 👍
Back door Roth conversion
The real question is how you’re getting approved for loans when you avoid paying taxes ?
Roth IRA’s are not taxable when you are allowed to pull it out.
Tell the tax man you’re poor with those legal magic tricks. 👌🏾
Wait. Chandler’s a wizard?
Hahaha
Casey, i find you on Dave Ramsey videos and i think Stephen Graham.
*IRS has entered the chat*
#1 tax strategy: Hire a CPA
❤️❤️❤️
I have a disability and every month the government give me a check but if I get a job they will take the check away and I want to be a RUclipsr I want to avoid paying taxes
isn’t that like tax fraud…..
first!!!!
my life is complete
Nice!
First
Nice
Tax fraud is the easiest strategy
Guys! Chandler bought a rental house with another RUclipsr, jack Doherty!!! Jack said it in his podcast with graham Stephan!!!!!
Chandler bought a house with jack Doherty!!!!!
and if he did...so what?
Stop yelling
First! Lol
Guys! He bought a house with another RUclipsr jack doherty!!!!!
First
Nice
@@ChandlerDavidSmith how’s it going, man?
Guys! Chandler bought a rental house with another RUclipsr, jack Doherty!!! Jack said it in his podcast with graham Stephan!!!!!
Guys! Chandler bought a rental house with another RUclipsr, jack Doherty!!! Jack said it in his podcast with graham Stephan!!!!!
Guys! Chandler bought a rental house with another RUclipsr, jack Doherty!!! Jack said it in his podcast with graham Stephan!!!!!
Guys! Chandler bought a rental house with another RUclipsr, jack Doherty!!! Jack said it in his podcast with graham Stephan!!!!!
Guys! Chandler bought a rental house with another RUclipsr, jack Doherty!!! Jack said it in his podcast with graham Stephan!!!!!
Guys! Chandler bought a rental house with another RUclipsr, jack Doherty!!! Jack said it in his podcast with graham Stephan!!!!!