Welcome back to another episode! Today, we’re diving into how depreciation really works and why so many people misunderstand its impact on their taxes.

📌 In This Episode, We Cover:

• The #1 Misconception About Depreciation – It’s NOT dollar-for-dollar tax savings!

• How Much You Really Save – A $100K depreciation deduction doesn’t mean $100K in cash savings—it means you’re saving on the taxes of that amount.

• Active vs. Passive Income – Why it’s critical to match your losses to the right type of income.

• Real Estate Professional Status (REPS) – How it can turn passive losses into active losses, letting you offset more of your income—including your spouse’s!

If you own real estate, run a business, or are looking for ways to legally minimize your taxes, this episode is for you.

🔊 Tune in now! And don’t forget to subscribe so you don’t miss next week’s episode, where we break down how to qualify as a Real Estate Professional and unlock even more tax-saving strategies!

In this premiere episode of Real Estate Professional Status Season 2! we dive into depreciation, the tax strategy every real estate investor must understand before jumping into cost segregation or accelerated depreciation. Too often, investors focus on the benefits of cost segregation without grasping the fundamentals of depreciation—leading to confusion and missed opportunities.

What You’ll Learn in This Episode:

🔹 What is depreciation? A clear, practical breakdown of how the IRS allows investors to deduct the wear and tear of a building over time.

🔹 Why real estate isn’t expensed immediately—and how depreciation turns your investment into a powerful tax shield.

🔹 The truth about “paper losses” and why depreciation can save you thousands (or millions) in taxes even though your property may be appreciating in value.

🔹 The IRS-defined useful life of real estate: 27.5 years for residential, 39 years for commercial—and why this matters.

🔹 Land vs. building: What actually gets depreciated and how property tax assessments determine the allocation.

🔹 Leverage & bonus depreciation: How investors can depreciate more than their initial down payment using financing strategies.

This episode lays the foundation for future deep dives into cost segregation, passive activity rules, the short-term rental loophole, and real estate professional status. If you want to offset your gains, minimize taxes, and maximize cash flow, this is where it all begins.

👉 Subscribe now and start leveraging depreciation like the pros!

In this episode, I sit down with Tim Johnson, a real estate consultant who specializes in helping business owners and real estate professionals leverage tax strategies to their advantage. We dive deep into the Real Estate Professional Status (REPS), why most CPAs don’t talk about it, and how business owners—especially contractors and real estate agents—can use it to legally minimize their tax liability.

Tim breaks down who naturally qualifies for REPS, the biggest mistakes people make, and why material participation is the key to passing an IRS audit. We also discuss why most accountants don’t prioritize tax strategies, how real estate can serve as a long-term tax shelter, and practical steps to document material participation without unnecessary hassle.

If you’re a business owner, real estate agent, or contractor looking to unlock massive tax savings, this episode is for you!

In this episode of the Real Estate Professional Status Podcast, I sit down with RE Tax Strategist Nathan Sosa to uncover “The Truth About Grouping” and its role in real estate tax strategy. We explore the nuances of grouping elections, how they apply to long-term and short-term rentals, and why the rules for grouping differ based on property types. Nathan explains how grouping impacts material participation tests, common misconceptions, and why it’s not always as simple as it seems.

Listeners will gain valuable insights into the following:

•The difference between Dash-9 (long-term) and Dash-4 (short-term) grouping elections.

•Why short-term rentals can’t be grouped with long-term properties.

•How grouping affects meeting the 100-hour or 500-hour material participation thresholds.

•The risks of improperly grouping properties and potential IRS challenges.

•Strategies for tracking time across multiple properties to prove material participation.

•Why grouping is a game-changer for scaling your portfolio.

Nathan also shares practical advice for W-2 earners, debunks myths about real estate professional status, and provides actionable strategies for leveraging tax benefits in real estate. Whether you’re a seasoned investor or just starting, this episode is packed with tips to optimize your investments.

Tune in and learn the real truth about grouping—and why it’s critical to get it right.

How to Reach Nathan Sosa:

•LinkedIn: Nathan Sosa

•Twitter/X: @NathanSosaTax

•For additional questions or consulting, connect via DM on either platform.

In this episode, tax strategist Nathan Ganz joins us to tackle a pressing reality for real estate investors and independent contractors: rising taxes.

Nathan, co-owner of Northwest Premier, shares why he believes we’re on the cusp of a tax increases—and how proactive planning is essential to protect wealth.

Together, we explore strategies real estate professionals can use to keep more of their income, leveraging legal tax benefits like real estate professional status and cost segregation.

Nathan breaks down how to avoid common tax pitfalls, optimize deductions, and stay ahead of future tax hikes.

He also delves into why relying on traditional savings methods like 401(k)s may no longer be viable for long-term wealth preservation and how real estate investment can act as a powerful hedge against a rising tax burden.

Don’t miss this insightful discussion on navigating the evolving tax landscape and securing a stronger financial future in real estate.

Book: The Financial Blueprint for Real Estate Agents

US Debt Clock: usdebtclock.org – A live tracker of U.S. national debt, spending, and economic metrics.

Contact Information for Nathan Ganz and Northwest Premier

• Website: nw-premier.com

How to Reach Asher Fried:

•Email: [email protected]

•Text: 917-626-1455

•Facebook

•LinkedIn

•Twitter/X

In this episode we sit down with Dwight Dye from DWD Strategies as he delves into the world of high-income contractors that unknowingly sit on a goldmine of tax advantages.

With years of expertise in tax strategy, Dye unveils how contractors, engrossed in their day-to-day operations, possess the untapped potential to significantly reduce their tax burdens simply by leveraging their existing real estate activities.

Listeners will be guided through the intricate pathways of tax codes and strategies, uncovering how activities they're already engaged in could qualify them for substantial tax benefits.

Dye's pragmatic approach demystifies complex tax jargon, making it accessible and actionable for professionals beyond the tax realm.

This episode promises a wealth of knowledge, offering practical steps to harness the power of REPS and transform your tax liabilities into lucrative opportunities.

Join us as Dwight Dye shines a light on this hidden pathway to financial efficiency and growth, equipping you with the knowledge to elevate your financial strategy from mere compliance to proactive wealth building.

Get intouch with Dwight

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In this episode, Karolis Matulis, a seasoned expert in real estate and taxation, delves into various intricate aspects of real estate investment and tax planning.

Matulis, holding key positions at WilkinGutenplan, including being a manager and chair of the Firm's Innovation Council, shares his extensive knowledge and experiences in the field.

The discussion primarily revolves around the dynamics of real estate investments, the implications of tax legislation, and the strategic management of real estate portfolios.

The episode covers a range of topics, including:

Real Estate Professional Status: Matulis discusses the real estate professional status and its relevance to different client bases, highlighting the importance of tailoring strategies to each client's unique situation.

Clientele Focus: The conversation shifts to the different types of clients Matulis works with, particularly focusing on those in the accumulation phase of their investment journey and those approaching the sunset of their investing life.

Tax Legislation and Its Impact: A significant portion of the discussion is dedicated to understanding the implications of various tax laws, such as the Qualified Opportunity Zone legislation introduced in the Tax Cuts and Jobs Act of 2017.

Real Estate Investment Strategies: Matulis emphasizes the importance of being in the driver's seat when managing a real estate portfolio, discussing how investors can plan the character of their income and make informed decisions based on the growth and expenses associated with their properties.

Tax Planning and Client Guidance: Throughout the episode, Matulis offers insights into how he guides his clients through the complexities of real estate investment and tax planning, ensuring they make the most out of every opportunity.

Enjoy the episode!!

Karolis Matulis

Manager at WilkinGuttenplan since 2013 and chair of the firm's Innovation Council, excels in real estate and partnership taxation, adept in handling complex transactions and §1031 exchanges. His proficiency in business valuation is crucial for litigation and estate/gift tax matters. Karolis stands out as a trusted business advisor, leveraging his deep knowledge in process automation and system integrations to enhance operational efficiencies. His focus on comprehensive business strategies and tax solutions enables him to adeptly navigate a range of business challenges, making him an invaluable asset to his clients.

Want to connect with Karolis?

Email: kmatulis@wgcpas.com.

Linkedin: https://www.linkedin.com/in/kmatulis/ 

Ever worry about getting audited by the IRS?

In this fantastic episode we deep dive into the complex realm of Real Estate Professional Status audits

I spoke with Yisroel Jacobovitch, a former IRS agent.

Yisroel brings a unique perspective, having transitioned from an auditor at the IRS to a private practitioner, now assisting clients in navigating the intricacies of audits.

The Real Estate Professional Status is notorious for being a critical area that frequently undergoes intense scrutiny by the IRS.

Yisroel provides a comprehensive overview of the audit process, starting from how tax returns are selected for auditing. 

In this episode we discuss

• Understanding REPS Audits: Insight into what triggers a Real Estate Professional Status audit and why it's a focal point for the IRS.

Tune in if you want to claim the real estate professional status without having to worry about getting an audit.

Want to get in touch with Yisroel?

Email: [email protected]

Call: 732-426-1040. 

In this enlightening episode, we delve deep into the complex world of real estate taxation with the expertise of seasoned CPA, Colleen Krcelich.

With her extensive experience, Colleen brings a wealth of knowledge, to the evolution of the paper loss. She takes us back in time what real estate investing was like in the 80's before the passive rules were put in place and how we got to where we are today .

Throughout the conversation, we traverse the historical landscape of real estate tax laws, discussing significant changes from the 1980s to the present day.

Colleen provides a lucid explanation of the Tax Reform Act of 1986, the introduction of 'REP Status' in 1993, and the implications of the 2017 tax cuts, especially regarding bonus depreciation in real estate.

Colleen also sheds light on the intricate details of material participation tests, offering practical insights for real estate investors to navigate these rules effectively.

Her discussion on the complexities of passive vs. active income, and how these classifications impact tax liabilities, is particularly enlightening.

Furthermore, the episode covers strategies for maximizing tax benefits in real estate, including the nuances of short-term vs. long-term rentals, and the importance of understanding IRS regulations to make informed investment decisions.

Colleen's expertise demystifies the complex world of the real estate professional status, providing listeners with actionable advice to optimize their investments and stay compliant with ever-evolving tax laws.

Join us for this deep dive and arm yourself with the knowledge to make smarter, more informed investment decisions.

Want to connect with Colleen?

[email protected]

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In this enlightening episode of our podcast

We delve deep into the world of tax strategies in real estate investing with the expertise of Mark Pelberg CPA specializing in advanced tax strategies for affluent real estate investors.

Mark shares his invaluable insights the real estate professional status, discussing its implications, benefits, and the nuances involved in qualifying for it.

We discuss the tax benefit possibilities investing in real estate brings with it. Get into many different nuances of REP status and material participation. 

Moreover, the episode touches on the potential of turning real estate investing into a family business.

Mark discusses the advantages of involving family members in your real estate ventures, from hiring your children to partnering with your spouse, thereby creating a powerful financial legacy.

This episode is a must-listen (especially if you got this far into reading the description)

Providing a wealth of knowledge on leveraging tax advantages, making informed investment decisions, and building lasting wealth through real estate.

Join us as we unravel the complexities of real estate investing with Mark Pelberg, and learn how to navigate this lucrative field with confidence and strategic acumen.

Want to get in touch with Mark?