Many top investors maximize their earnings with brilliant tax strategies that look to the future while accounting for the income and expenses accrued during the tax year. To talk about tax strategy, we welcome back investor, CPA, and tax guru, Noah Rosenfarb. We open the discussion by looking at how you can benefit from the 1031 tax code, with specifics on passing assets to heirs and saving money by breaking large investments into smaller pieces.
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As we’re in an election year with a potential regime change, Noah highlights the need to plan for new tax laws, especially as section 1031 might be amended. To emphasize this point, Noah explains how we’re in a period with the lowest historical tax rate for high-income earners, and historical precedent shows that this will likely change in the future. We explore how our self-reporting tax system gives us great tax flexibility which should always be used to our advantage. After sharing why you or your spouse should become a registered real estate professional, Noah chats about how most accountants are trained to look for tax benefits in the past but aren’t always able to look into the future to save on your tax spend — which is why you should approach experts. We ask Noah for details on his unique strategy and his answer shows how much you can save through out-of-the-box thinking. Near the end of the episode, Noah advises listeners to get a second opinion on their tax strategy every three years before sharing what most contributed to his success. Tune in for more on building a forward-thinking tax strategy that will increase your earnings.
Key Points From This Episode:
- The benefits of tax code 1031 when entering new real estate investments.
- Using the 1031 to pass on assets and to gain more by breaking up investments into multiple entities.
- Why people make suboptimal deals in order to not lose their tax deferral.
- Receiving the depreciation benefits from selling and investing in other projects.
- Planning for new tax laws that might affect section 1031, among others.
- Looking to historical precedents to see how tax law may change.
- How our self-reporting tax system gives us great flexibility when declaring our income and expenses.
- Why you should qualify as a real estate professional to decrease your tax spend.
- How accountants aren’t always qualified to help you avoid future taxes.
- Getting a low-cost accountant to prepare you 1040 but getting a high-cost expert to plan your tax future.
- Noah shares his unique strategy involving setting up a corporation in Puerto Rico.
- Maximizing your tax strategy by setting up businesses across state-lines.
- When you should get a second opinion on your tax strategy.
- Hear the number one thing that’s contributed to Noah’s success.
- How Noah likes to give back by spending all the tax dollars that he’s saved.
[bctt tweet=”As we’re looking to this next election, you want to start thinking about what are the potential tax laws that are going to impact your financial situation. — Noah Rosenfarb” username=”whitney_sewell”]
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About Noah Rosenfarb
Noah Rosenfarb counsels entrepreneurs that are looking for ways to enhance their wealth while working less, living more, and enjoying financial abundance. He has more than 20 years of real estate investment experience, which has taught him that fractional ownership in large assets is an excellent tool to create multiple passive income streams. He allows accredited investors to www.InvestWithOurFamily.com through syndications with as little as $50,000. Through 31 acquisitions, Noah has built a portfolio of 3,500+ apartment units and over 500,000 square feet of office buildings and retail shopping centers. He is a third-generation CPA, and he personally serves as the primary financial advisor for a dozen families that have a net worth in excess of $20 million through his family office, Freedom Wealth Advisors, LLC. Noah openly shares the tools, resources, and strategies he has used to create his own true financial freedom and has sold eight companies, owned over a dozen, and continues to acquire businesses, websites, and real estate. Noah lives in Parkland, Florida with his wife, Amanda, and their two young children.
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