Mar 22, 2021
Ever wondered how you can reduce your tax liability? Is it even possible to lower your taxes? The answer to both questions is YES. In today’s episode, we’re back with another Ask Pancham Show as he will share all about how you can keep your income rather than paying it for taxes!
As the tax season is fast approaching, tune in as the host himself will discuss the power of real estate investments in terms of keeping your wealth. Learn the efficient way to lower your tax rates so listen until the end of the episode!
Quote:
"What if you're able to reduce your taxes by 1%, 2%, 5%, 10%? You will be giving yourself a raise by that amount.”
Timestamped Shownotes:
- 0:37 - Question of the Day: How can you use depreciation to offset your W-2 income
- 2:31 - Classifying the 3 types of income
- 3:47 - How passive income can lead to a lower effective tax rate
- 7:05 - Why being a real estate professional can help offset your active income
- 10:02 - Misconceptions on what it takes to be a real estate professional
3 Key Points:
- Minimize your tax position by shifting your earned income to passive or portfolio income.
- Passive income is not subjected to high effective tax rates since these are covered by depreciation and amortization.
- If you’re a qualified real estate professional, you can use your passive loss to offset your active income and can save a lot of taxes.
Get in Touch:
- Listen to The Gold Collar Episode’s Show #4 here at https://thegoldcollarinvestor.com/show4/
- The Gold Collar Investor Club - https://thegoldcollarinvestor.com/club/
- Pancham Gupta Email - p@thegoldcollarinvestor.com