Are you sure that you really understand real estate taxation? Let’s find out here.
Today I had the pleasure of speaking with a “black belt” in real estate taxation, Michael Plaks. A first-generation Russian immigrant who founded REITax Corp and two other top tax firms in Houston since 1996. Michael is an award-winning speaker, best-selling author, and also the ultimate expert in IRS taxation for realty investors.
Let’s jump right into Michael’s story and how he saves real estate investors from excessive taxation.
[00:01 - 07:29] Opening Segment
Let’s bring in Michael Plaks to the show
I share some of Michael’s amazing achievements
Michael talks about his background and his specialty
Coming from Russia with the same attitude on taxes
Specialty in taxation since 1996
He talks about REI Tax Corp
Michael talks about the new rule of the conversation
Pick random topics regarding real estate taxation
If you are new in REI you will learn various taxation terms
If you have been in REI for a while you can test yourself in the 10 yes/no questions test
If you are choosing a professional to work for you, regarding taxation, you can use this information to see if you are in good hands or not
[05:20 - 25:38] 10 Yes/No questions
If there is a couple who makes a 200k salary between husband and wife, can they reduce their tax with tax rivals from rental properties?
The answer is No
200 happens to be too high
Michael explains the taxation system in Real estate
If we buy rental properties and pay 100 grand for it, and in 5 years it will double in value, is it possible to avoid capital gain taxes when we sell it?
The answer is yes
1031 exchange strategy
If you buy a fixer-upper to rebuild sales and do construction on it, do we get long term capital gains?
The answer is No
State income taxation
Self-employment tax
Strategies to mitigate and anticipate Flippers high taxation
Can we lend out IRA money to another real estate investor?
If it is your own 401k then Yes
Roth IRA and the Regular IRA
We both have full-time jobs, can we commodify real estate professionals if one of us is obtained realtor wise?
The answer is related to the first question
Depends on the total number of income
Tweetable Quotes:
“You can’t avoid debt but you can avoid tax .” - Michael Plaks
