Natalie Kolodij is the CEO of Kolodij Tax and Consulting, and she is also a real estate investor herself. She uses her investing experience to help other investors out in the tax world. Natalie gives advice on how to determine depreciation and shares examples of what you should specifically do. In this episode, Natalie digs into the tax advantages or potential tax advantages of specific short term rental investing strategies and ways that you may be able to write things off of your active income by using short term rentals.She also talks about depreciation and cost segregation and a lot of things around this space.
[00:01 - 05:15] Opening Segment
Natalie shares how she got her start as a real estate tax strategist
You don’t need a license to do your own taxes
Work with someone who is certified and has experience in doing taxes
[05:16 -13:27] Tax Strategies for Short Term Rentals
Short term rentals can be converted to be non passive and have access to write off limits
Per the tax code, any asset with a life of less than 20 years qualifies for a write off
As a real estate professional, any of your real estate losses are now non passive
Deductible with no limit every year as incurred
Can be offset with any other income with those losses for real estate
Real estate professional status does not matter for this specific short term rental strategy
[13:28 - 25:34] Qualifying for Real Estate Professional Status
Tracking your hours while you are working on real estate
Don’t force the situation when you know you don’t qualify for the status
There’s is a big risk in fluffing up the numbers
Talk to a tax professional about how cost segregation can help benefit you
Natalie shares the benefits and disadvantages of getting a professional tax person early on
[25:35 - 30:01] Closing Segment
Quick break for our sponsors
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What is the best investment you've ever made other than your education?
The first mobile home that she flipped
Natalie Kolodij’s worst investments
A guru seminar she bought after finishing college
What is the most important lesson you’ve learned in business and investing?
Consistency and relationships
Connect with Natalie Kolodij:
Website: https://www.kolotax.com/
Email: [email protected]
Social media: Facebook, Instagram, Tiktok
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Tweetable Quotes:
“A good tax professional isn't cheap, but a cheap tax professional isn't good.” - Natalie Kolodij
“ A lot of people can never reach real estate professional status if they love their jobs, they're never gonna do real estate full time.They're never gonna have that option. So this is sort of an alternative. Let's look at short-term rentals, if this works for your investing goals and your plan.” - Natalie Kolodij
“If you are networking consistently, talking to people, consistently putting out information consistently, You will find deals, and you will find those relationships that take you to find deals.“ - Natalie Kolodij
