In this episode of the Freedom Investor Podcast, Matt Sanderson welcomes Matt Bontrager from True Books. They discuss various aspects of real estate investing with a focus on tax benefits and strategies. Matt shares his journey and the services offered by True Books, a CPA firm specializing in real estate that provides tax planning, tax preparation, and accounting without audit work. They talk about material participation, cost segregation, bonus depreciation, and Real Estate Professional (REP) status, providing a teaser on these topics. Matt explains how True Books started in 2020, his partnership, and the growth to currently serving 650 to 720 clients. They highlight the importance of bookkeeping in the accounting and tax strategy for real estate investors. The conversation dives deep into tax benefits, with Matt detailing scenarios for high-income earners like doctors and ways to leverage real estate to save on taxes. They discuss accelerated depreciation, offering scenarios about buying properties to offset high incomes, highlighting the potential issues and opportunities. The discussion addresses the STR loophole and different types of real estate investments, with Matt explaining the difference between long-term and short-term rental properties. They provide insight into how unique structuring can maximize tax savings, including strategies for business owners who buy properties for their business use. Matt emphasizes that success in leveraging these strategies involves meticulous time tracking and meeting IRS requirements, particularly material participation. Finally, they touch upon market opportunities for baby boomers with substantial equity tied up in real estate and investments, exploring how these funds could be redirected towards short-term rentals for better tax benefits. The episode concludes with information on how to contact Matt and True Books for further consultation and services.

00:00 Welcome to the Freedom Investor Podcast

01:15 Introduction to True Books

03:28 The Importance of Bookkeeping

06:52 Tax Strategies for High-Income Earners

09:17 Understanding Depreciation and Cost Segregation

11:08 Real Estate Tax Advantages

14:24 Practical Examples and Scenarios

25:43 Maximizing Savings: Real Estate Investment Strategies

26:53 Client Insights: Balancing Real Estate Investments and Taxes

27:10 Syndications: A Passive Investment Approach

28:47 Leasing vs. Buying: Strategic Decisions for Business Owners

29:44 Real Estate Professional Status: Key Considerations

37:54 Material Participation: Understanding the Requirements

42:21 Short-Term Rentals: A Loophole for Tax Benefits

46:50 Final Thoughts and Practical Advice