The Real Estate Professional Status

The Truth About Grouping - Nathan Sosa, CPA, MST

In this episode of the Real Estate Professional Status Podcast, I sit down with RE Tax Strategist Nathan Sosa to uncover “The Truth About Grouping” and its role in real estate tax strategy. We explore the nuances of grouping elections, how they apply to long-term and short-term rentals, and why the rules for grouping differ based on property types. Nathan explains how grouping impacts material participation tests, common misconceptions, and why it’s not always as simple as it seems.
 
Listeners will gain valuable insights into the following:
•The difference between Dash-9 (long-term) and Dash-4 (short-term) grouping elections.
•Why short-term rentals can’t be grouped with long-term properties.
•How grouping affects meeting the 100-hour or 500-hour material participation thresholds.
•The risks of improperly grouping properties and potential IRS challenges.
•Strategies for tracking time across multiple properties to prove material participation.
•Why grouping is a game-changer for scaling your portfolio.
 
Nathan also shares practical advice for W-2 earners, debunks myths about real estate professional status, and provides actionable strategies for leveraging tax benefits in real estate. Whether you’re a seasoned investor or just starting, this episode is packed with tips to optimize your investments.
 
Tune in and learn the real truth about grouping—and why it’s critical to get it right.
 
How to Reach Nathan Sosa:
•LinkedIn: Nathan Sosa
•Twitter/X: @NathanSosaTax
•For additional questions or consulting, connect via DM on either platform.

Preparing For The Rising Tax Tide - Nathan Ganz

In this episode, tax strategist Nathan Ganz joins us to tackle a pressing reality for real estate investors and independent contractors: rising taxes.
 
Nathan, co-owner of Northwest Premier, shares why he believes we’re on the cusp of a tax increases—and how proactive planning is essential to protect wealth.
 
Together, we explore strategies real estate professionals can use to keep more of their income, leveraging legal tax benefits like real estate professional status and cost segregation.
Nathan breaks down how to avoid common tax pitfalls, optimize deductions, and stay ahead of future tax hikes.
 
He also delves into why relying on traditional savings methods like 401(k)s may no longer be viable for long-term wealth preservation and how real estate investment can act as a powerful hedge against a rising tax burden.
 
Don’t miss this insightful discussion on navigating the evolving tax landscape and securing a stronger financial future in real estate.
Resources Mentioned In The Episode
Book: The Financial Blueprint for Real Estate Agents
 
US Debt Clock: usdebtclock.org – A live tracker of U.S. national debt, spending, and economic metrics.
 
Contact Information for Nathan Ganz and Northwest Premier
Website: nw-premier.com
Instagram: @nwpllc
Email: info@nw-premier.com
Phone: (971) 901-0443
How to Reach Asher Fried:
•Email: asher@offsetgains.com
•Text: 917-626-1455
•Facebook
•LinkedIn
•Twitter/X

From A Tax Liability To REPS Ability - Dwight Dye

In this episode we sit down with Dwight Dye from DWD Strategies as he delves into the world of high-income contractors that unknowingly sit on a goldmine of tax advantages.
 
With years of expertise in tax strategy, Dye unveils how contractors, engrossed in their day-to-day operations, possess the untapped potential to significantly reduce their tax burdens simply by leveraging their existing real estate activities.
 
Listeners will be guided through the intricate pathways of tax codes and strategies, uncovering how activities they're already engaged in could qualify them for substantial tax benefits.
Dye's pragmatic approach demystifies complex tax jargon, making it accessible and actionable for professionals beyond the tax realm.
This episode promises a wealth of knowledge, offering practical steps to harness the power of REPS and transform your tax liabilities into lucrative opportunities.
Join us as Dwight Dye shines a light on this hidden pathway to financial efficiency and growth, equipping you with the knowledge to elevate your financial strategy from mere compliance to proactive wealth building.
 
Get intouch with Dwightdwd.dwightdye.com
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Building Success Through Tax Incentives: Real Estate Insights from Karolis Matulis

In this episode, Karolis Matulis, a seasoned expert in real estate and taxation, delves into various intricate aspects of real estate investment and tax planning.
 
Matulis, holding key positions at WilkinGutenplan, including being a manager and chair of the Firm's Innovation Council, shares his extensive knowledge and experiences in the field.
 
The discussion primarily revolves around the dynamics of real estate investments, the implications of tax legislation, and the strategic management of real estate portfolios.
The episode covers a range of topics, including:
Real Estate Professional Status: Matulis discusses the real estate professional status and its relevance to different client bases, highlighting the importance of tailoring strategies to each client's unique situation.
Clientele Focus: The conversation shifts to the different types of clients Matulis works with, particularly focusing on those in the accumulation phase of their investment journey and those approaching the sunset of their investing life.
Tax Legislation and Its Impact: A significant portion of the discussion is dedicated to understanding the implications of various tax laws, such as the Qualified Opportunity Zone legislation introduced in the Tax Cuts and Jobs Act of 2017.
Real Estate Investment Strategies: Matulis emphasizes the importance of being in the driver's seat when managing a real estate portfolio, discussing how investors can plan the character of their income and make informed decisions based on the growth and expenses associated with their properties.
Tax Planning and Client Guidance: Throughout the episode, Matulis offers insights into how he guides his clients through the complexities of real estate investment and tax planning, ensuring they make the most out of every opportunity.
Enjoy the episode!!
 
 
Karolis Matulis
Manager at WilkinGuttenplan since 2013 and chair of the firm's Innovation Council, excels in real estate and partnership taxation, adept in handling complex transactions and §1031 exchanges. His proficiency in business valuation is crucial for litigation and estate/gift tax matters. Karolis stands out as a trusted business advisor, leveraging his deep knowledge in process automation and system integrations to enhance operational efficiencies. His focus on comprehensive business strategies and tax solutions enables him to adeptly navigate a range of business challenges, making him an invaluable asset to his clients.
Want to connect with Karolis?
Email: kmatulis@wgcpas.com.
Linkedin: https://www.linkedin.com/in/kmatulis/ 
 
Want to connect with Asher?
 
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Linkedin
 
 
 

Navigating REPS Audits: Insights from a Former IRS Agent

Ever worry about getting audited by the IRS?
Want to know what it's like and how you can best be prepared?
 
In this fantastic episode we deep dive into the complex realm of Real Estate Professional Status audits
 
I spoke with Yisroel Jacobovitch, a former IRS agent.
 
Yisroel brings a unique perspective, having transitioned from an auditor at the IRS to a private practitioner, now assisting clients in navigating the intricacies of audits.
 
The Real Estate Professional Status is notorious for being a critical area that frequently undergoes intense scrutiny by the IRS.
 
Yisroel provides a comprehensive overview of the audit process, starting from how tax returns are selected for auditing. 
In this episode we discuss
Understanding REPS Audits: Insight into what triggers a Real Estate Professional Status audit and why it's a focal point for the IRS.
Audit Process and Questionnaire: Insights into the step-by-step process of an IRS audit, including typical questions asked and the importance of the initial interview.
Navigating Audit Challenges: Expert advice on how to interact with IRS agents during an audit and effectively present your case.
Preventative Measures and Best Practices: Tips on proactive measures and best practices to minimize the risk of an audit and prepare in case one occurs.
Tune in if you want to claim the real estate professional status without having to worry about getting an audit.
Want to get in touch with Yisroel?
Email: YD@YDJCPA.com
Call: 732-426-1040. 
 
Want to connect with me?
 
Afried@madisoncres.com
 
Facebook
 
Linkedin
 
Text 908-783-1572
 
 
 
 

Evolution Of The Paper Loss - Colleen Krcelich

In this enlightening episode, we delve deep into the complex world of real estate taxation with the expertise of seasoned CPA, Colleen Krcelich.
With her extensive experience, Colleen brings a wealth of knowledge, to the evolution of the paper loss. She takes us back in time what real estate investing was like in the 80's before the passive rules were put in place and how we got to where we are today .
Throughout the conversation, we traverse the historical landscape of real estate tax laws, discussing significant changes from the 1980s to the present day.
Colleen provides a lucid explanation of the Tax Reform Act of 1986, the introduction of 'REP Status' in 1993, and the implications of the 2017 tax cuts, especially regarding bonus depreciation in real estate.
Colleen also sheds light on the intricate details of material participation tests, offering practical insights for real estate investors to navigate these rules effectively.
Her discussion on the complexities of passive vs. active income, and how these classifications impact tax liabilities, is particularly enlightening.
Furthermore, the episode covers strategies for maximizing tax benefits in real estate, including the nuances of short-term vs. long-term rentals, and the importance of understanding IRS regulations to make informed investment decisions.
Colleen's expertise demystifies the complex world of the real estate professional status, providing listeners with actionable advice to optimize their investments and stay compliant with ever-evolving tax laws.
Join us for this deep dive and arm yourself with the knowledge to make smarter, more informed investment decisions.
 
Want to connect with Colleen?
colleen@bizsupportllc.com
Facebook
 
Want to connect with me?
 
Afried@madisoncres.com
 
Facebook
 
Linkedin
 
Text 908-783-1572
 
 

The Pursuit Of A Tax-Free Life Though Real Estate - Mark Perlberg

In this enlightening episode of our podcast
 
We delve deep into the world of tax strategies in real estate investing with the expertise of Mark Pelberg CPA specializing in advanced tax strategies for affluent real estate investors.
 
Mark shares his invaluable insights the real estate professional status, discussing its implications, benefits, and the nuances involved in qualifying for it.
We discuss the tax benefit possibilities investing in real estate brings with it. Get into many different nuances of REP status and material participation. 
Moreover, the episode touches on the potential of turning real estate investing into a family business.
 
Mark discusses the advantages of involving family members in your real estate ventures, from hiring your children to partnering with your spouse, thereby creating a powerful financial legacy.
This episode is a must-listen (especially if you got this far into reading the description)
Providing a wealth of knowledge on leveraging tax advantages, making informed investment decisions, and building lasting wealth through real estate.
 
Join us as we unravel the complexities of real estate investing with Mark Pelberg, and learn how to navigate this lucrative field with confidence and strategic acumen.
 
Want to get in touch with Mark?
Email: info@markperlbergcpa.com.
Follow him on all socials @MarkPerlberg CPA” on YouTube for more insights into real estate professional status.
Instagram
Facebook
Linkedin
 
Want to connect with me?
Email: Afried@madisoncres.com
Facebook
Linkedin
908-783-1572
 
Want to see if your investment property can benefit from a cost seg?Shoot me a text 908-783-1572 for a free complimentary proposal on your property.

Unlocking Wealth Through Real Estate - Sarah Ward

In this eye-opening episode of the Real Estate Professional Status Podcast, we dive deep into the world of real estate investment with the dynamic Sarah Ward.
 
With over a decade of experience as a real estate agent and investor, Sarah shares her journey from her first duplex purchase at 24 to building a diverse portfolio across multiple states.
Listeners will gain invaluable insights into strategies like house hacking, the significance of choosing the right property, and the nuances of cash flow versus appreciation markets.
 
Sarah also demystifies the concept of Real Estate Professional Status (REPS), discussing its implications, qualifications, and tax advantages, especially for high-income earners.
This episode is a treasure trove of practical advice, whether you're a first-time homebuyer, a seasoned investor, or anyone in between.
Sarah’s candid storytelling and expert tips provide a roadmap for not just buying property, but creating lasting wealth and financial security through smart real estate decisions.
Tune in for an enlightening session that could reshape your approach to real estate investment!
 
Connect with Sarah
Linkedin
Instagram 
http://sarahdoesrealestate.com
 
Want to learn more about REPS?
Let's get in touch!
Afried@madisoncres.com
 
Facebook
 
Linkedin
 
# 908-783-1572
 
Want to know if your property benefit from a cost seg?
 
To find out shoot me a text 908-783-1572 for a free complimentary proposal on your property.
 
 

What Hours Counts For REPS? - Ryan Pulice

Join us as we delve into the complexities of real estate professional status with tax and accounting expert Ryan Pulice.
Based in Virginia, Ryan brings a wealth of knowledge, specializing in RE tax planning and advisory services for real estate investors and small business owners.
 
In our conversation, we explore various critical aspects such as the
impact of construction activities
the nuances of material participation hours
and the intricacies of IRS regulations in real estate.
This episode is packed with valuable insights and practical advice to help you navigate the tax landscape of real estate investing. Tune in to learn more about how you can possibly qualify for REPSGet in touch with Ryan 
Website: https://www.thepulicegroup.com/contact 
Email: contact@thepulicegroup.com
Want to learn more about REPS?
Let's get in touch!
Afried@madisoncres.com
 
Facebook
 
Linkedin
 
# 908-783-1572
 
Want to know if your property benefit from a cost seg?
 
To find out shoot me a text 908-783-1572 for a free complimentary proposal on your property.
 
 

Real Estate & The Tax Code - Jeremy Wells

In this episode, we delve into the dance between the tax code and real estate investing.
We unravel how the tax system is not just a backdrop but a dynamic player that shapes the real estate landscape, offering a suite of incentives for real
Join us as we offer a wealth of knowledge that give you the full picture of tax advantages in Real Estate and on navigating it's complexities.
 
Whether you're a seasoned investor or just starting out, this episode is a key resource for anyone looking to deepen their understanding of the interplay at the heart of taxes and real estate investing.Want to get in touch with Jeremy?
Social Media Handle: @JWellsCFO
Website: jwellscfo.com
 
Want to learn more about REPS?
Let's get in touch!
Afried@madisoncres.com
 
Facebook
 
Linkedin
 
# 908-783-1572
 
Want to know if your property benefit from a cost seg?
 
To find out shoot me a text 908-783-1572 for a free complimentary proposal on your property.