The legendary Jack Shea joins us today to discuss how to simplify your tax returns by using trusts, to completely get your real estate off your tax return…other than a line item. Trusts are a powerful tool for real estate investors, if you use them properly. Check out this Flip Tip on FlipNerd.com!
Mike: Hey, It’s Mike Hambright with FlipNerd.com, and we have a quick tip to share with you from Jack Shea, who’s going to share a tip on how to get real estate off your tax return.
Jack: That’s part of the secrets that we give up in these classes, Mike, that people can get real estate off their tax return into a trust column where all the Schedule E’s, for example, are merged into one trust, and it’s reported as the Hambright Trust, Uncle Harry Trust. And it’s all segued; it’s all in one line on the back of a schedule E by using K-1s and LLCs.
Mike: And how would somebody go about finding an accountant that could help with that, Jack?
Jack: We have a chart in the trust book, and we show you how in the class that you have the beneficial interest of each trust goes to an LLC.
Jack: Okay? And each, say you had 20 houses. 20 house K-1s pour into the Hambright Family Trust. And so it’s 240,000, that’s a number, it’s one line on your tax return, no rents, no maintenance, no repairs, no depreciation. But all of that is back-up information in the K-1. Nothing illegal. People do it, and it’s a trick that you have to get in the tent to learn about it. It’s a strategy, I’d say.
Mike: Sure, sure.
Jack: Sound okay?
Mike: That sounds great. I’m just going to give you a link here, because I know it’s complicated, so go to JackSheaRealEstate.com. And Jack has more information, a lifetime of lessons of how to use trusts. Thank you, Jack.
Jack: And mistakes, many mistake.
Announcer: Thanks for joining us for another FlipNerd.com Flip Tip. To access hundreds of tips and full expert interviews, please visit FlipNerd.com or join us in the iTunes store.
We’d like to thank our sponsors, RealtyMogul.com and National Real Estate Insurance Group.
To access the most robust social platform in existence for real estate investors, where you can find off-market wholesale deals, find great vendors to help you in your business, and learn and socialize with other real estate investors, please visit the all-new FlipNerd.com. If you’re not yet a member, you can set up a free account in less than a minute.
Mike: Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.