MFREE 118 Trailer # 5 with Gian Pazzia: Could This Strategy Let You Use Passive Losses Against Active Income?

Aloha, It’s Shelon "Hutch" Hutchinson here! If you’re enjoying 'The Multifamily Real Estate Experiment' podcast, please like, comment, and share our episodes to help us reach and inspire more people. Thank you for your support!

Most people don’t realize this, but if one spouse qualifies as a real estate professional, the entire household may benefit on their taxes. Even W-2 income could be offset.

Gian Pazzia breaks down how it works, what the 750-hour rule really means, and how couples are using this to take control of how their income gets taxed.

It’s not a loophole. It’s strategy.

#TaxPlanning #RealEstateProfessional #W2Strategy

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*

Thank you to all of our listeners!!! We would love to hear from you!!!

Email me at:
[e-mail]

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
Visit our website to find out more:
www.hsquaredcapital.com

Join our Facebook Group:
The Multifamily Real Estate Experiment

Follow us on Instagram:
@hutchthemarineinvestor

Episode Transcript

Speaker 2 (00:00):
If your spouse, is a real estate professional for tax
purposes, and you file a jointtax return, now all of a sudden
you are allowed to use thedeductions from that real estate
that you purchased against.
The income you're making at yourW2 job.

(00:20):
So that opens up a whole otherworld of possibilities in terms
of being able to manage andshelter your taxable income.
Now, there are some caveats tothat strategy, One.
Your spouse, in order to meetthe definition of a real estate
professional for tax purposes,they have to spend 750 hours,

(00:42):
doing real estate activities.
A list of activities thatqualify and, those activities
generally include, managing yourproperties.
Okay.
If you buy a few, let's saysingle family home rentals,
right?
They buy enough of'em, the wifeor the husband, whoever the

(01:03):
spouse is that has the time tobe a real estate professional,
manages those properties.
They meet the hoursrequirements.
Okay?
And then at that point, theycan.
Go out and buy, be an LP in alot of deals, right?
Once they meet that criteria.
They can start netting all theirreal estate activities together.

(01:24):
So they could be an LP in dealsonce the spouse meets that
definition.