Flip Tip Summary

In this FlipNerd.com Flip Tip episode, Tom Wheelwright, advisor to Robert Kiyosaki shares 3 quick tips on how you can minimize your tax bill. Who doesn’t want to do that? It’s great advice from one of the biggest tax advisors in the country…don’t miss it!

Flip Tip Transcript:

Mike: Hey, it’s Mike Hambright from FlipNerd.com, and we have a quick VIP to share with you, actually three tips, from Tom Wheelwright who is one of Robert Kiyosaki’s Rich Dad advisors, a wealth of information on tax. He’s going to share three tips on how to reduce your 2014 taxes that you can actually do in 2015.

Tom: Thanks, Mike, so here you go. Number one look seriously at doing a cost segregation. This is hiring a professional to analyze all the properties that you own for investment purposes and determine how much of the cost of that property really should have been allocated to land, building, land improvements, and the contents of the building. What this will do is it will vastly accelerate your depreciation, and that’s something you can do in 2015 even if you bought your property three, four, five, six years ago. So that would be tip number one.
Tip number two would be look seriously with your tax adviser about the new IRS repair regulations. These are new regulations in 2014 that you can do on your tax return, and actually look at it in 2015 file a Form 3115 which is a change in accounting method, and you can catch up a lot of expenses that you might have capitalized, and been depreciating when you should have actually expensed them, and taken the expense right then. You can catch up in 2014 on your tax return when it’s prepared in 2015.
The third one is a lot of real estate investors get hung up because of the pass of loss rules. The number one thing to understand on pass of loss rules is that if you can meet the real estate professional test that is a get out of jail free card. The only way to do that realistically is you must make an election on your tax return. That’s to the tax return that’s being prepared in 2015 for 2014. The election is called a Section 469-C7 election; Section 469-C7 you must make it with your original return, and so your tax preparer has to know that’s what you want to do. So sit down with your tax preparer, go through these three items, you can save taxes on 2014 while your 2015 taxes are being prepared.

Mike: Thank you for joining us for another FlipNerd Flip Tip.

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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.