Myths of Real Estate Tax Strategy Exposed

Описание: Real estate tax planning is filled with misinformation, and believing the wrong advice can cost you hundreds of thousands (or millions) over time.

In this episode, I break down the biggest myths in real estate tax planning and explain what actually works, based on tax law, real audits, and real client outcomes.

We cover myths like:

• Do you need a real estate license for Real Estate Professional (REP) status?
• Can you only do cost segregation in year one?
• Can real estate losses eliminate all your taxes?
• Is cost segregation a red flag to the IRS?
• Do you need an LLC, holding company, or management company for deductions?
• Does more depreciation always mean better tax planning?
• Can short-term rentals really offset W-2 income with just 7 days and 100 hours?
• If real estate doesn’t reduce your taxes, is it still worth investing?

This episode is for:
• Real estate investors
• High-income W-2 earners
• Business owners
• Anyone confused by online tax “gurus” pushing overly complex or misleading strategies

If you want real clarity instead of marketing hype, this episode will save you from making expensive mistakes.

🎥 Want to see what your tax strategy could look like?
I’ll send you a free personalized video explaining what may be possible for you using real estate and advanced tax planning strategies.

👉 Request your Opportunity Report here:
https://ProsperlCPA.com/apply

👍 Like
💬 Comment with a myth you’ve heard that didn’t sound right
🔔 Subscribe for advanced real estate & tax strategy content

00:00 Real estate tax planning is full of misinformation
00:36 What you’ll learn + myth-busting overview
01:05 Free opportunity report (what it is + where to get it)
01:34 Myth: You need a real estate license for REP status
02:27 What REP status actually requires (hours + 750 rule)
02:50 Myth: Cost seg must be done in year one
03:19 When waiting on cost seg can be smarter
04:07 Myth: Real estate losses always eliminate all taxes
04:31 Excess business loss limits (why some losses don’t apply)
05:33 Why W-2/non-business income hits a ceiling
05:43 Real estate losses don’t offset FICA + state tax issues
06:35 Myth: Don’t do cost seg if you might sell
07:00 Recapture explained + how planning can reduce it
07:24 1031 exchange and timing/bracket strategies
08:10 Myth: You can’t reduce taxes without buying assets
08:42 Other write-offs + credit strategies beyond “buy more stuff”
09:52 Myth: Depreciation is the only thing that matters
10:35 Short-term rental “loophole” misunderstandings
11:05 Material participation: the 100-hour trap + cleaners issue
12:16 Myth: You need an LLC to get deductions
12:38 What LLCs are really for (asset protection)
13:00 Myth: Holding companies create write-offs
13:27 Why the “money flow diagram” is usually nonsense
14:14 Grouping rentals without pointless entities
15:07 Why complexity often equals unnecessary fees
15:51 Myth: Cost segregation is an audit red flag
16:21 How cost seg can increase depreciation accuracy
17:34 Myth: More depreciation always equals better planning
18:29 Timing strategies + elections (including opting out)
18:49 Myth: Aggressive strategy = IRS risk
19:56 If real estate doesn’t reduce taxes, what’s the point?
20:23 Tax-advantaged cashflow + refinance benefits
21:15 Real planning looks at the full picture (W-2, business, investing)
22:21 Closing + apply link + warning on bad entity setups