Last week we interviewed Amanda Han of Keystone CPA, Inc. on our Real Estate Investor Goddesses podcast. She’s a real estate investor herself as well as a CPA with years of experience in real estate and taxes.
Her interview was chock-full of great advice about how to save more money and what to look out for in the near future tax wise.
There were tons of nuggets of wisdom that she laid down during the interview. One of the best nuggets was when she shared the #1 mistake she sees most real estate investors make. This is a mistake that leaves money on the table or in the government’s hands if you will.
If you like paying more in taxes, read no further.
If you’d like to be able to get legitimate tax deductions through what she calls “grateful expenses”, then keep on reading.
What Amanda calls “grateful expenses” are expenses that people are grateful to be able deduct because they’re expenses that you’d have anyway, but because they are expenses that are “reasonable and ordinary” for real estate investment, they can be moved from the personal non-deductible bucket to the deductible bucket.
Examples of these “grateful expenses” are:
- cell phone
- home office
- travel costs
- dinner with potential investors
- books on real estate investment or personal development
How do you know if an otherwise personal expense should be classified as a legitimate business expense?
Amanda says you should ask yourself:
“Would an ordinary real estate investor have this expense?”
If the answer is yes, than you can deduct it.
Most people don’t realize this is possible, so they miss all these deductions. They don’t claim the hundreds and sometimes thousands of dollars in deductions they could legally claim.
And the nice thing is these business deductions are not just for LLCs and Corporations. Even if you’re a W2 employee doing real estate on the side, you can take advantage of these business deductions.
Pretty cool, right?
Amanda gave tons of other great advice during our 3o minute interview. Check out her interview on Blog Talk Radio or on iTunes, and make sure you subscribe so you don’t miss the other great content and interviews we have every week.
Monick Halm is the co-founder of Real Estate Investor Goddesses. She is a real estate investor with over 11 years of investing experience in single family, multi-family, mobile home parks, flipping, and syndication. She is also a certified interior designer, Feng Shui expert, author, speaker, certified NLP and money coach, and attorney. Monick is passionate about real estate, design, and helping women to thrive.