Taxation in Real Estate with Michael Plaks

Sep 25, 2020

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

 

Resources Mentioned:

• Exchange Intermediary

You can connect with Michael on Facebook, Youtube, and Linkedin. You can also check out his website at https://www.michaelplaks.com/

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