When and How to Use the Real Estate Professional Tax Strategy

Get certified In EVERY strategy I teach! Learn how by booking a FREE 15 minute demo: markjkohler.as.me/
When and how do you become a real estate professional? It is a wise decision in every situation? I'll break it down here.
For more info on our Directed IRA company, visit: directedira.com/
Get your tickets to my BIGGEST event of the year: www.taxandlegal360.com/
To get more details about my NEW certification: markjkohler.com/become-a-cert...
Get My FREE Ultimate Tax Strategy Guide: markjkohler.com/contact/
To Get Started With Any One of My Teams: linktr.ee/MJKKZbin
If you need Tax help you can trust, check out my Certified Tax Advisor Network: markjkohler.com/tax-pro-profi...
Check out my Law Firm KKOS Lawyers at www.kkoslawyers.com
Check out my personal website with all my products at: www.markjkohler.com
I go LIVE almost every week...Don't forget to Subscribe and Hit that bell icon so you get a notification every time I upload a new video or go LIVE
If you liked the video, please give it a "Thumbs up!" and please subscribe to see more!
#Taxes #avoidtaxes #paylesstaxes #tax #realestateinvestment #Markjkohler #KKOSLawyers #markjkohlerLIVE #Entrepreneur #rentalrealestate #taxplanning #smallbusiness #taxlaw

[@dave.zoller]

“I didn’t know” is not a good defense against the IRS! Lol. This is such a helpful video, Mark.

[@MarkJKohler]

Thanks Dave!! Please subscribe and share with others!

[@ryanendersmith]

@Mark J Kohler, could you make an updated version of this video for the 2022 and 2023 tax seasons?

[@chandhun2011]

Incredible communication, production, and clarity! Thank you Mark. - Hunter

[@FexebsTvitonDaviban]

Thank you! Truly! You're the best out here! Always getting so much out of your videos! Please continue posting!

[@MarkJKohler]

Glad you like the videos! Make sure to share with your friends!

[@jungsoonkoo]

Wow. What a great information is shared. Thanks so much!

[@ATayy31]

Just love your personality! Great info as well!

[@grivello]

outstanding communication skill. Thank you.

[@matthewyates2735]

What are the seven things that are the material participation ? Thanks

[@ChennaVarri]

Great content! Thanks, Mark. These videos have been providing so much insight into taxes. I have a few questions if one of the spouses is a high-income earner (say 500K$ W2 income), 1. Do you recommend purchasing the rental properties through an owners-owned LLC? 2. If so, can the LLC deduct 100% front-loaded bonus depreciation on rental property? 3. And if the other spouse is a "Real estate professional", can the depreciation be offset with active income? 4. Can the LLC also contribute to a "Defined benefit/Cash Balance" plan even if there's no profit?

[@MattOehrlein]

Love the improved video quality (did you get a new camera?)

[@jeremyferguson9292]

Great content! Subscribed and looking forward to diving into the rest of your videos.

[@MarkJKohler]

Hey Jeremy! Thanks for subscribing, and welcome aboard, I am so happy to have you here! I do live videos almost every week, so I hope I can see you there!

[@daverobinson1574]

Great job Mark. You are a wealth of knowledge.

[@mariamurray2267]

If the RE I'm flipping and my rentals are owned inside a SD-IRA, could I still qualifier as a professional (assuming I meet the other qualifications you outline)? I do own 2 property inside LLCs as well.

[@MRZEROTOINFINITY]

There sure are some great tax benefits to investing in real estate 🏡Carry forward those losses. Delayed gratification. I like your beach analogy. Real estate professional, 14 hrs a week, great info about those material participation tests. 👍

[@MarkJKohler]

Thanks Michael! Glad you enjoyed it! Please subscribe and share!

[@AbrahamIGuerrero]

@@MarkJKohler thanks a lot! Now, on minute 6:48 you say I can have property managers and still qualify as Real Estate Professional and do the material participation test as well. My question: Can my wife log property analysis, purchase contract negotiation and signing, weekly remodeling progress review, LLC creation, financing (all this for specific properties on her portfolio) while the property manager is still managing contractors, finding tenants, doing repairs, collecting rents, etc? We’re thinking 25 out of state properties like tomorrow and we have someone who will do just about everything on site. Like managing the property manager and handling everything from distance

[@touchdownraiders2009]

Awesome job mark!

[@MarkJKohler]

Thank You! Please subscribe and share with others!

[@karenwhite445]

Excellent!

[@cekpetuk]

what if i don't have a mortgage on the investment property, can I still write it off? thanks

[@JRizzlePaschJohnathan]

Is "Primary" the exact word the IRS uses? or "more than one-half"?

[@S.H.E._Invests]

Do hours spent doing work as an HOA board member count toward REP Status? I’m on the HOA for the community that my rental property is in and am wondering if that time spent counts for anything?

[@waltercastro4928]

What if neither wife and I have a w2 and I'm doing the real state professional just managing are 4 properties she works cash. Please help..

[@nicholasshook7513]

Do they report rentals on schedule e still or c?

[@vaggeto]

This is really interesting. Are there any real-life example #s of how much of a deduction a single rental home can provide? Let's say it was worth $200k?

[@tongaexpress]

Hey Mark. I love your content and II believe there is a solid market you can go after and possibly generate content for. I see a lack of tax advice and asset protection for pilots and aircraft owners. I would be happy to share the content with every organization in the industry should you decide to create in this niche! Keep up the amazing work.

[@MarkJKohler]

I'll make a note of that! Keep bugging me until you see it! In the meantime, subscribe so you don't miss it!

[@chayden1402]

Me and my wife entered into a partnership small business. We are buying properties, we have one so far and looking to get more where located in Maryland. We both have full time jobs but are looking into getting a CPA to do our taxes next year. Do we qualify to be professional real estate investors because we have a realtor and us actively looking for good properties too buy.

[@ljcdentist]

I work part-time. I have 44 properties. Out of these I manage about 10 of them. I also have a mini storage facility that I manage. Now since I manage some of these properties can I qualify as a real estate professional? Does Mini Storage count? My lease rent time for my mini storage is 1 months so no short term rental with them. My concern is the properties that the management company manages. Can I add any hours I also do dealing with these properties? Or since I don't put more hours in than they do on these properties may I used all properties that I participate in or only the ones I manage? Can I count the mini storage hours I work? Can I combine the mini storage with the properties I manage to reach this 750 hours?

[@AK47HEAVYMETAL83]

You’re wrong, I don’t own real estate, BUT I have been studying up on it since forever lol I do have plans on becoming one some day and I find your videos extremely helpful and awesome bro. 😎💪🏽 Thanks for the information!!

[@MarkJKohler]

Glad you find my videos helpful! Please subscribe so you don't miss out on more great content!

[@ms8172]

I have the Real estate professional status..no W2 because I work this materially and active full time. I am selling 9 properties (end of May) and move my money to multi-family (passive) syndications. They will not allow 1031 exchange into the fund. However, it will generate up to 55% in depreciation losses in the same year I sell my 9 properties. Will the paper loss on syndication depreciation off-set my Long term capital gains from selling our 9 properties? Wife works W2 but is active.

[@sebastiansmith4945]

Great video

[@MarkJKohler]

Thanks!

[@littlebigfis]

What about AMT?

[@monetarymindset_]

Great video.

[@MarkJKohler]

Thank You!

[@zoranploscar8229]

Hey Mark - nice video. I went to Amazon and bought your book. Curious, to qualify…can you be in property management, property technology, etc to qualify as real estate professional? The hours is easy, but this is a really interesting approach…thanks for any feedback

[@danielsingh9701]

Hello Mark, My wife and I are new investor and want to know if we’d qualify as a real estate professional. My wife is a real estate attorney but works as a W-2 employee in a real estate law firm. I work in property management for a company, also as a w-2 employee. I also have my real estate license. We own 5 units but do not have an LLC yet so they’re under my name. Do you think we can qualify under my wife since she’s a real estate attorney but does so under w-2 status in a real estate firm? Thank you. Danny

[@awesomebosssoccer7387]

Hi Mark. Thanks for sharing this information. I am thinking about investing in a 37 unit JV out of state. All 6 partners have a percentage of ownership, voting rights, sign on the loan and an active role. My role would be to prepare and update the financials. Would the hours spent in this role count towards material participation? Thank you!

[@MarkJKohler]

Hey! This is a great question, to get your question answered, please submit it to podcast.mainstreetbusiness.com/ thank you!

[@11nica5]

Great vid @Mark, I am a spouse looking to become a real estate professional, what would be my first step?

[@amandaw8829]

Me too. 😊

[@henrychu5806]

Mark: Great video. Putting aside the material participation test, would you say a real estate lawyer (practicing 99-100% in real estate law) would be able to qualify as a real estate professional?

[@11nica5]

My research would lead me to say, No. Under the IRS they would see that you spend more than 50% of your time in your W2

[@henrychu5806]

@@11nica5 My brief research on cases interpreting this issue makes me think so, too. Thanks!

[@11nica5]

@@henrychu5806 YW 🙏

[@lenox001]

Mark awesome video, I work a blue collar union job and have invested heavily in my wife’s real estate career and she’s been doing great. I don’t think we have been maximizing our taxes as efficiently as we could. Would you be willing to have a quick chat or email as gents!

[@rickstichter]

Awesome video in plain english! I am trying to figure out why My accountant says my wife and I have $95K in carryover loss. My wife is a full-time realtor. We have 4 rental properties. I have a W2 job and we still just break even or we have to pay in every year. I have been sure to tell the accountant to identify my wife as a real estate professional. It seems like we should not have carryover AND still be paying in a tax time...

[@mtigress4589]

If your wife receives a W2 those hours don't count towards the real estate professional classification.

[@eclipsegsx96]

Let’s say I have two houses one I can sell early 2021 for a possible profit of 150,00. The 2nd unit I currently live in for the past year(I moved out the 1st one in 10/2019) can possibly sell for a profit of about 25 to 30,000 how would you go about these sales to pay less taxes to Uncle Sam as possible?

[@MarkJKohler]

This is a good question. There's a few ways to go about it depending on your situation. Check out this playlist with lot's of different real estate strategies: kzbin.info/aero/PLZPD0F2WWU7mk9WI3U1HnRuIKeNdTWZvQ. I'm sure you'll find one in there that can help.

[@davidvanek5486]

Great video, like all your videos and books! What business structure do you recommend for part time real estate agents (sole or LLC)? Many thanks for all your work and sharing your knowledge!

[@MarkJKohler]

Thank you!! Please subscribe and share!!

[@james80nyc]

$25k loss per home or total if you have more than one rental as an active professional?

[@thevillagepcsolutions1947]

Do you accept Bitcoin as a form of payment for services?

[@MarkJKohler]

No, sorry

[@dennismc8145]

How do I find a CPA that will know how to do this? I was told most CPA's think this is unethical.

[@MarkJKohler]

Please check out this accounting firm: kohlereyrecpas.com/. I am a partner there so all the CPAs know the same strategies as I do. Check them out. If you have any questions or would like additional help, please contact my Marketing Director at [e-mail] and we'll be sure to take care of you from there. Some CPAs may think it's unethical but that probably just means they don't know everything. Get a second opinion though.

[@MrHardrock]

Any new tips for 2021?

[@MarkJKohler]

Be sure to keep an eye out for my video coming next year. I will be doing plenty of videos with good tax tips for the year 2021. Whenever there is a change in tax law, I'll be sure to let you know. Don't forget to subscribe so you'll be notified when I do publish new videos on my legal and tax tips.

[@ricardogauna2800]

Mark: Would I be able to purchase your books in Español.

[@ricardogauna2800]

I need to have my father read your material so he can understand to have his LLC's in order.

[@MarkJKohler]

Ricardo, we don't have anything yet, but we are working on getting "8 Steps to Start and Grow Your business" translated in Spanish. I will make sure to let you know when we release that!

[@pacific2k]

I’m a grade school teacher and hold a realtor license. I do real estate during the weekends and breaks. Do I qualify as a real estate professional?

[@MarkJKohler]

Great question! please contact our Law Firm KKOS lawyers for help regarding this subject. 888-801-0010.

[@pacific2k]

Mark J Kohler Hi Mark, One more question before I call your firm. How do I get paid through an s-Corp in Texas for my realtor commission? I don’t think this is allowed in Texas

[@nicweethee]

I’m already on dating restrictions lol

[@LamboLapdog]

🤯

[@gflem]

750 hours? If I bought my first rental in June and was really only in the business for six months, do I still have to meet the 750 hour requirement?

[@MarkJKohler]

Give my assistant Rosalie a call at 435-586-9366 ext 2024 and she will be able to help you!

[@gflem]

@@MarkJKohler Thanks very much. I retired. Bought a duplex, and want to increase my holdings. Im sure I can spend 750 hours looking for real estate ddeals in Fresno, CA. I can go to open houses and make low ball offers. I think that merely looking to acquire real estate investments, for 750 hours, can make me a real estate professional. yes?

[@mtigress4589]

@@gflem No. Looking for more properties is an investor activity.