Is your home really an asset? #shorts #taxes #entrepreneur #tax #realestate #businessowner

About Karlton Dennis

Karlton Dennis is the Founder and CEO of Tax Alchemy, a firm specializing in sophisticated tax planning. Tax Alchemy is one of the fastest-growing tax firms in the U.S. Karlton and the Tax Alchemy Advisors have created powerful tax plans for thousands of clients in the United States. Many of Karlton’s clients have achieved life-changing tax savings through the strategies that he and his firm design and help implement. In fact, Karlton routinely helps his clients save 6 or 7 figures in taxes.

In addition to leading Tax Alchemy, Karlton is also the creator of the Karlton Dennis YouTube channel. This channel is one of the most successful and popular channels in the tax niche. Karlton uses his YouTube channel as a vehicle to share his wealth of tax knowledge with millions of people.

Licensed EA (Highest Tax Credential Awarded by the IRS)
Forbes Business Development Council Member
Bigger Pockets Partnered Tax Advisor
Author of The Short-Term Rental Rule: How to Reduce Taxes Like the 1 Percent
Founder and CEO of Tax Alchemy

#KarltonDennis

[ChristianDLindsey]

Investment property is 25% down and like 10% interest rate. Buy your investment property as a primary residence after converting the first property into an investment property.

[baler]

The asset is offsetting of rent. I don’t care who you are, you need a place to live. My mortgage is now half the going rent after 11 years, and soon will be paid off essentially paying my self said rent in full. In the meantime my asset appreciates while I sleep, so when I retire I can choose to sell it, move and rent it, and or when I die leave it to my children. Its an asset my friends…

[taikimmel]

Answer: Yes. It appreciates in value. Pretty much the definition of an asset. Also your fixed mortgage payment is a hedge against inflation.

[JW-tksr]

A Heloc is better then a hard money loan if your doing a quick flip, but not for buying a rental.

[dericocooperphotography]

Facts! In Texas you can't do a HELOC or cash out refi until you have had the house for at least a year. VA loans allow you take out 100% of the equity in your home to purchase investment real estate. Have not been in my house six months yet but already planning to do what you are talking about.

[ddaal]

No unless you cannot get an investment property mortgage. Because HELOC usually has higher interest rate, even higher than investment property mortgage. And the HELOC interest is not tax deductable but mortgage interest is.

[DiggisGay]

Take out an 8.5% loan to get a 7.25% mortgage to buy a rental property so you can harvest 1/27.5th of the building (not the land) purchase price in depreciation. But if your income is too high you cant take the passive loss if you dont have passive gains.

[caseytheconqueror]

Then the fun begins when your investment fails and takes your 3% home with it.

[CaliforniaGirl]

No, don't do a HELOC. Leave it paid off. Bad advice. The interest is higher. Just get another loan at a lower rate for the other property.

[davyjones]

I took out 50k. I have to auto trade accts in the market at 25k ea. Making 4 to 7;% a month ea acct. 3 yrs later, I'm my own bank because of my home. It's a beautiful thing 🎉

[vimalmadhani]

The HELOC is another loan though and will have a high interest rate. You should have gotten the HELOC when rates were lower

[battles]

Unless you sell your home, you aren't "appreciating" anything. When you pass the banks all get their money back and sell it again.

[brianlee]

You’re a star on Jasmine Dilucci’s channel 😂

[williamkucera]

This I totally agree with. I'm utilizing it as well!

[joelee]

Your home pay you when you sell it. Why would I want to take an interest rate Heloc of 8% to 9%? I rather payoff my home at 2.25% and live off my dividend investment of 6%.

[jennisjackson]

I shared this with my children. So true. Hard pill to swallow, but true. Now, I know. So, my children now know better.

[glopez]

I have been wanting to but HELOC rates are ridiculously too high. Again we are on pause. Technically we should do it and purchase the investment at current rates and then refinance to lower rates but analysis would result negative net income.

[rs-hfmz]

These tactics by definition are liabilities. Especially using debt leverage to go into even more debt purchasing a new income property with that 6.5% interest lol.

[nigelreid]

Never take out your equity to buy investment properties. Yes your home is an asset as it appreciates over time. If the investment Fails you run the Risk of losing all properties. Can’t agree with this one.

[cheezybred]

If you don’t immediately take out a heloc against a fully paid off primary residence then you shouldn’t do any of this