Episode #218: Year End Tax Strategies with Brandon Hall

Taxes don’t have to be daunting, especially when you know the strategies to make them work for you. In today’s episode, we welcome back Brandon Hall, a practicing CPA and the founder and managing partner of Hall CPA, to unpack powerful tax-saving strategies every investor should know. Brandon delves into key topics for year-end tax, like how to handle bonus depreciation and the best ways to navigate the short-term rental loophole. He breaks down some of the pitfalls of trying to save money in the short term and the benefits of thinking long-term and reducing your effective tax rate, offering a clear breakdown of how to save money in the long run. Discover different long-term tax saving strategies, like the BRRRR method, and how to approach mechanisms like a 1031 exchange. Brandon also breaks down how to deal with passive activity netting, qualifying as a real estate professional, and why it’s essential that you master documentation and admin work to successfully utilize the short-term rental loophole. Don’t miss out on this must-listen for investors aiming to leverage tax advantages wisely and avoid costly pitfalls!

Key Points From This Episode:

• Expected upcoming tax changes with the new Republican administration.
• Advice for handling bonus depreciation at the end of the year.
• When and how to get your cost segregation (cost-seg) study done.
• How audits have increased and why you should document all receipts.
• Thinking long term with your taxes and how to reduce your effective tax rate with tax planning.
• The tax benefits of investing in oil and gas (and whether it’s worth it).
• How to successfully use the BRRRR strategy: buy, rehab, rent, refinance, repeat.
• The benefits and drawbacks of a 1031 exchange, like the swap and drop method.
• Discerning between passive and non-passive activities and how to use them.
• Passive activity netting: what it is and how to leverage it.
• The requirements for qualifying as a real estate professional.
• A breakdown of how to navigate the short-term rental loophole.
• Taking on the administrative burden of the short-term rental loophole.
• A cautionary tale from a 2020 tax court case, Lucero vs. Commissioner.

Links Mentioned in Today’s Episode:

Brandon Hall on LinkedIn

Hall CPA

Hall CPA on X

Hall CPA on Facebook

Episode 120: Real Estate Tax Changes with Brandon Hall

Asset Management Mastery Facebook Group

Break of Day Capital

Break of Day Capital Instagram

Break of Day Capital YouTube

Gary Lipsky on LinkedIn

Joseph Fang on LinkedIn