071: How to Save on Your Taxes as a Real Estate Investor with Amanda Han & Matt MacFarland

Taxes can be tricky for anyone, but they can be especially challenging for new investors. Finding the right tax professional to help can save you tremendous amounts of time and money.

On this episode of Zen and the Art of Real Estate Investing, Jonathan sits down with accountants Amanda Han and Matt MacFarland to untangle some of the mysteries surrounding real estate investing and taxes. Amanda and Matt are the founders of Keystone CPA. They are also real estate investors, so they have a unique understanding of what beginners and expert investors need to know when it comes to taxes.

Jonathan, Amanda, and Matt identify one of the main pillars of effective tax savings for investors, why there is no one-size-fits-all property for investors, and the benefits a 1031 exchange can bring to your tax situation. They also explore the concept of depreciation, why investors are required to take depreciation, and what makes it a significant benefit to investors. Finally, you’ll hear Amanda and Matt’s take on leverage and some of the investors' biggest tax blunders.

If you’re confused about taxes and want to feel more confident as you up your real estate investing game, you won’t want to miss this episode with Amanda Han and Matt MacFarland.

In this episode, you will hear:

The one area of taxes where real estate investors need the most help
The value of good bookkeeping and getting a system in place that works for you
Who can save money on taxes, and why your investor level doesn’t matter
How Amanda Han and Matt MacFarland decided to get into real estate together as a married couple
Why there isn’t one particular property type that can allow a regular investor to save on taxes
The pros and cons of using a 1031 exchange
What a reverse 1031 exchange is, and who it works best for
The real definition of “like-kind” when using a 1031 exchange
Where real estate investors can take depreciation, which can be a big benefit to them as investors. and some misconceptions surrounding depreciation
Leverage and how you can use it to your benefit
How Amanda and Matt began to understand more about the investing world as they helped investor clients
The story behind the book they wrote for Bigger Pockets
Some areas of taxes where real estate investors are making blunders
Who LLCs are for and when they become useful
The benefits of using trusts to place property in your kids’ names
Some pitfalls investors may run into as they buy properties in the current economic climate

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