How to Use Passive Real Estate Losses to Reduce Your Active Income

You can potentially save thousands on taxes by leveraging this strategy in your real estate portfolio.

In this segment from a Compound Asset Acquisition Bootcamp, I provide a brief history of the Passive Activity Loss Rules and explain the two ways that you can qualify for their exceptions. You can either qualify for real estate professional status, which is a pretty difficult thing to do for most W-2 earners, or you can qualify for the short-term rental exception. If you qualify for either of these two exceptions, you can use your real estate losses, like your depreciation expense, to offset your active W-2 income, potentially reducing your tax bill by a significant margin.

If you would like to learn more about the Passive Activity Loss Rules exceptions and find out how to implement them in your life, I have put together an entire mastery for Uplevel Community Members.

CAABQ2-D1_LF03

--------------------------------------------------------
Follow us for more updates and insights:
----------------------------------------------------------------