Podcast appearances and mentions of natalie kolodij

#598: Tax day is approaching, and if you're like most people, you might be overlooking deductions that could save you money. In our latest podcast episode, tax strategist Natalie Kolodij joins us to reveal common tax misconceptions and share strategies that could potentially lower your tax bill. "The tax code is 70,000 pages," Natalie explains. "There's so much. So I really like to have people focus on a handful of things to be mindful of." For W-2 employees who often have fewer tax advantages, Natalie highlights several overlooked deductions. If you live in a state without income tax (like Florida or Washington), you can deduct sales tax instead — especially on major purchases. Don't forget about personal property taxes on vehicles, boats or RVs either. Medical expenses can be deductible, but only amounts exceeding 7.5 percent of your adjusted gross income. Natalie suggests consolidating elective procedures into a single tax year to maximize this benefit. Charitable deductions offer surprising opportunities too. Miles driven while volunteering, expenses from fostering animals, and even home renovation materials donated to organizations like Habitat for Humanity can all qualify. Natalie also explains how "bunching" donations in alternate years can significantly increase tax savings compared to giving the same amount annually. The interview tackles major misconceptions about selling your primary residence. While many believe living in a home for two years makes all gains tax-free, Natalie clarifies that any "non-qualified use" periods (like when it was a rental property) can still be taxable. For small business owners and real estate investors, Natalie recommends tracking all business-related expenses — even seemingly minor ones like industry-related books or educational materials. She emphasizes the importance of proper record-keeping and having separate accounts for business expenses. As we navigate tax law changes following the recent election, Natalie's advice rings true: maintain flexibility in your tax planning and consider working with professionals who specialize in your specific situation. Timestamps: Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths. (0:00) Intro to tax day discussion (2:46) Common tax savings for W-2 employees (4:12) Standard vs itemized deductions explained (5:46) Often forgotten property tax deductions (6:58) Sales tax deductions for no-income-tax states (9:06) Medical expense deduction thresholds (12:53) Charitable giving strategies and overlooked deductions (17:51) Bunching donations in alternate years (22:20) Home sale tax exclusion misconceptions (30:44) Tax withholding changes and common mistakes (44:35) Bonus payment tax myths debunked (52:52) Finding the right tax professional (1:02:02) Small business and real estate investor tips (1:09:38) Best practices for tax record keeping (1:15:14) Preparing for potential tax code changes Learn more about your ad choices. Visit podcastchoices.com/adchoices

If you've considered attending a cruise that relates to your business-you won't want to miss this episode. Learn the ways you can and can't write off a cruise as a business expense. Facebook Group for Tax ProfessionalsFacebook Group for Real Estate Investors [00:00:00] [00:00:00] Welcome to Real Estate is Taxing, where we talk about all things real estate tax, and break down complex concepts into understandable, entertaining tax topics. My name is Natalie Kolodij, I'm your host, and I am so excited that you've decided to join me.[00:00:23] Hello. Hello everyone. And welcome to this week's episode. The past several months, I have attended multiple conferences, tax conferences, real estate conferences, all across the country. Various venues. And it got me thinking about one of my favorite travel business topic. Overlaps. Which is when you can and when you can not. Deduct travel on a cruise ship. [00:00:53] There's a lot of blogs and articles out there, but they're all fairly vague or they give very [00:01:00] generalized steps and don't really talk about the feasibility of it. Or actual examples of it. I spent some time today searching for some court cases related to this topic. And there really aren't any specific to cruise ship travel as its own deduction. [00:01:19] I couldn't find it as a focus point of a case. I did find some court cases that were semi-related we'll chat about one of those at the end. But outside of that, there's not a ton of guidance because it's pretty cut and dry. [00:01:34] [00:01:34] The code section for this hasn't changed since 1982. So there haven't been any big updates or anything that really needed to be contested in recent years. So let's get into it. There are two different ways you can potentially write off a cruise as a business expense. Both of these are covered in code section [00:02:00] 2 74 M and they are split between addressing conventions on cruise ships. And then a secondary category known as luxury water travel. So starting off with conventions on cruise ships. This is something that I hear about pretty often. I think anyone in the tax industry and real estate in a lot of industries, There are multiple cruises per year related to most industries that you can choose to attend. [00:02:33] It will be in most cases, a seven day cruise. They will buy a room block the same way they would for a conference at a hotel or a resort. And then everything takes place on the cruise. There are however many hours of education. There are, different conference related events and networking. [00:02:51] They're renting out general speaking areas. And attendees pay for the room. And the cruise fare, it's all typically rolled [00:03:00] into one price. So these are marketed pretty frequently. And I have most often seen these marketed as a deductible business expense. But the truth of it is very rarely. Is a conference or an educational event on a cruise ship. Going to just easily be deductible. So let's start off with the first. Addressing of this. [00:03:29] So let's look at how the code words, this. In the case of any individual who attends a convention, seminar, or other meeting, which is held on any cruise ship. No deduction shall be allowed under section 1 62 for expenses allocable to such meeting. Unless the taxpayer meets the requirements of paragraph five. And establishes that the meeting is directly related to the active [00:04:00] conduct of his or her trade or business. So code section 1 62. Is the part of the tax code that explains ordinary and necessary business expenses. As a starting point, attending a convention seminar, et cetera, on a cruise ship. Is only a business deduction. If it directly relates to the taxpayers ongoing trader business, that makes sense. Next part. Again, it is directly related to the active conduct of his or her trader business. And that, and then it goes on to list two requirements. Requirement number one, the cruise ship is a vessel that is registered in the United States. And requirement number two. All ports of call of that cruise ship are located in the United States or in possession of the United States. [00:04:53] So when we just start off with looking at these two initial requirements, I will [00:05:00] let you guess how many cruise ships you think fit the bill? If we are looking at large commercial cruise lines. there's a thousand, 2000 people on board, maybe more. It normally is a week long, goes out to a few islands, go somewhere else. But we're not talking about like a river cruise or one of those little boats that'll fit like a hundred to 300 people, But one of those large commercial cruise ships, where there is a buffet and like a kid's club and water slides and all of that. One we're looking at that level of cruise ship. There is one. Singular ship that meets the requirement. Norwegian cruise lines, pride of America based in Hawaii is us registered. And it is the only large commercial cruise lines, cruise ship. That is us registered. Most cruise ships are registered to other countries for a variety of reasons. So just right off the bat, most cruise [00:06:00] ships are not going to meet this requirement. The vast majority of cruises and cruise ships do not check the boxes. To be able to write off a convention or seminar that is held on a cruise ship. If it did, let's say that. Your industry is hosting a cruise that goes to Hawaii on that pride of America cruise ship. So it is us registered and it is only going to the United States. [00:06:28] then there is a $2,000 expense limit. For the total cost of that cruise with that seminar or convention. Total expense CAPTA, $2,000. In addition to that, if you happen to find a cruise that ticks all of the boxes and does qualify. To write off as a convention or an event that is held on a cruise ship. There's a whole bunch of reporting requirements that are required as [00:07:00] well. for the tax year where you're claiming that deduction. You also need to include. A written statement. Signed by the individual attending the meeting. [00:07:10] That includes information about the trip, the total days that excludes the transport to, and from the cruise ship. The number of hours each day of the trip where you devoted to only business activities. You need to include a program or schedule for all of the business activities or meetings. And any other information that might be required by the secretary. [00:07:36] Additionally, you also need to include. A written statement signed by an officer of the organization or group sponsoring the meeting or the conference. And that has to include. A schedule of the business activities for each day, the number of hours, which you attended those business activity. And any other [00:08:00] information as might be required by the secretary. so for the amount that we are fed and marketed cruises that are a tax deduction and attending these seminars on a cruise that are going to be a write off, they're likely not going to be. And in the rare event, they are. They're a huge pain in the ass to include everything you need to on your tax return to claim that deduction. So that's not a very likely option. [00:08:27] It's not my favorite option. But that's what we have for the availability of writing off a convention or a seminar that is specifically held on a cruise ship.[00:08:39] The next option that I think is the far better choice. Is looking at your crews under the definition of luxury...

Join me as I dive into two real estate focused Tax Court cases from summer of 2024. There's always something interesting to be learned when it comes to court cases.  Facebook group for Real Estate InvestorsFacebook group for Tax Professionals TC Summary 2024-17TC Summary 2024-13 [00:00:00] Welcome to Real Estate is Taxing, where we talk about all things real estate tax, and break down complex concepts into understandable, entertaining tax topics. My name is Natalie Kolodij, I'm your host, and I am so excited that you've decided to join me.[00:00:23] Hello. Hello everyone. Welcome to this week's episode. This summer has been a pretty good summer for tax court cases. And what I mean is that there have just been several that I specifically have enjoyed and thought were interesting. And that's because there have been a handful that relate to real estate. [00:00:45] [00:00:46] Now I love anything court related. I love reading true crime books. I love listening to the podcast. So for me, Reading tax court cases is extra exciting. But even [00:01:00] if you do not find that as cool as I do. These are still something that you should hold at least a little bit of interest in. The tax code itself is very rarely black and white. [00:01:12] There's a lot of room for interpretation. There's a whole lot of guidance and nuance that happens after the code is written. And the tax court results are really just one of those pieces of guidance. Reading these court cases. Really does give us fantastic insight to the way the courts have been leaning on some of these topics that are in that gray area. And when it comes to real estate, there's plenty of gray area that we love playing in with the tax code. So getting these more recent kind of thoughts from the tax court. Getting this feedback, seeing how they're viewing things. [00:01:55] This is invaluable. What I have for you guys today. [00:02:00] Is two court cases that are both tax court summary opinions from this summer. So these are super recent from July and August. And both are related to real estate. [00:02:11] The first case that I want to walk you guys through is from last month, this came out August 20, 24. This is TC summary, 2024 dash 17. Eason V commissioner. So this case was interesting because it deals with a topic that comes up pretty frequently when it comes to real estate in two different capacities. The first one being, if you pay for one of those 40, 50, $60,000 real estate guru courses, is it deductible? [00:02:45] And when is, or isn't it. And the other part of the question being, if you are new in real estate. When does your business actually begin? When are you open for business where you can start writing [00:03:00] off? All of your costs that are incurred. So those were the two big questions that came up in this case. [00:03:08] So this summary opinion relates to a couple who owned two rentals in 2016. One of them, they maintained as a rental. The second rental property they had sold by June of 2016. So at this point, they've got a little bit of real estate experience. They just actively got rid of half of their real estate business that existed, so to speak. [00:03:33] So they've got one rental left. [00:03:35] That same year. The taxpayer in this case. Lost his job. Close to the beginning of the year, the taxpayer lost his job. And the couple started looking into other ways they could supplement their income and other opportunities to help make up. For that last paycheck, they were used to getting. And one of the things they came across was real estate investing. So [00:04:00] they were already a little bit familiar with it and they had some experience with rentals, but they stumbled across an ad for a real estate course or courses that you could take. That would teach you how to invest presumably. In some capacity. The court case does not go into the details. Of exactly what was covered in that course or those courses. But what it does say is that the taxpayer and the spouse decided to invest in this And they spend $41,934 on two different courses from this same real estate. Uh, quote, education provider. So once they bought these courses, The couple, then went on to set up an S corporation. So they established an S Corp in July of 2016. And they got some business cards. They got some custom branded stationary. [00:05:00] But outside of that, Nothing else really happened. So there was no additional purchases of real estate. There were no proven efforts at marketing. For a real estate. [00:05:14] There was no proven efforts at advertising that they were in the market to buy real estate. Really not a whole lot else happened after they set up this S corporation and bought some business cards. Also worth noting. Is that by 2018. So within a year and a half from when they purchased these large expensive courses. The company through whom they had bought the courses. Went out of business. So another piece to this specific case that was taken into account by the tax court. Was the fact that this couple did anticipate having this ongoing support and resources. And all of this training and the moon and the sun and [00:06:00] everything else gurus promise you when you give them $40,000. And by 2018. None of it was there. [00:06:07] It had all disappeared. The company went under and they were now on their own. [00:06:12] So the year in question. For this couple's court case is 2016. So 2016 is the year when, as a recap, they had one rental property. They had sold off their other rental. Husband lost his job and they paid 40,000 plus dollars to accompany for real estate education. They then set up an S corporation, got some business cards and stationary. And that was the extent of the business operations. [00:06:44] in this case, there were a few key considerations. That were looked at. The first consideration. Is. Under code section 1 62. When is the taxpayer entitled to [00:07:00] deduct? An expense as a business expense that is ordinary and necessary. Like when is it rightfully able to be deducted? And a part of the wording to that code section. Is that it relates to ordinary or necessary expenses paid or incurred? During a tax year in quote, carrying on any trader business. Now a lot of businesses do not make money for their first few years. [00:07:29] That's not uncommon. A lot of businesses lose lots of money for multiple years that does not make or break whether or not someone is operating a business. However, in this case. There was all of the expense with none of the income, but also none of the proven effort to generate income. And none of the provable attempts. To actually continue to operate a business after buying the course, setting up the company, buying some [00:08:00] business cards that was the end of their effort. So for 2016, This couple reported over $40,000 of expenses as deductible business expenses. But when the court went back and looked, they really had no proof. That a good faith attempt was made. To actually run or operate or carry on a trader business. Part of the reason why. Is that it was never clearly defined what this couple's...

Anyone with a 1065 Partnership or 1120-S S-Corporation should have bookkeeping in my opinion, but if you don't...this episode is for you. This is your head-start on getting everything together for your tax professional to file your 2024 business tax return. Facebook Group for Tax Professionals Facebook Group for Real Estate Investors Introduction[00:00:00] Welcome to Real Estate is Taxing, where we talk about all things real estate tax, and break down complex concepts into understandable, entertaining tax topics. My name is Natalie Kolodij, I'm your host, and I am so excited that you've decided to join me.[00:00:23] Hello. Hello everyone. We have just made it past the first fall extension deadline. Any 10 65 partnerships or 1120-S S corporations were due on September 16th this year. So we've just passed that hurdle. And part of what I realized this year is that there are a lot of people who don't know they've created an entity.[00:00:49] They're not aware that they have a partnership. I've talked about this before. Or there are people who create the entity, they create a partnership or they create an S corporation, but they don't really know. Or their tax professional didn't give them a good rundown on what the differences are, what is required for filing, and what will be different because you now have this entity.[00:01:12] So if you are someone who has a partnership or an S corporation, and you do not have formal bookkeeping, you don't have full QuickBooks, you don't have a bookkeeper, then this episode is for you. So I will note if you are using Tessa for your rental properties and you have a partnership, this is not formal bookkeeping.[00:01:33] It's not a true bookkeeping system or a true double-entry platform. So while Tessa is great for keeping track of a profit and loss, and just keeping track of your income and your expenses for a property, once you move into a separate tax return, once you move into a 10 65 partnership filing, there's more information we need to keep track of, and it doesn't do this very well.Preparing for 2024 Tax Year[00:01:57] For today's show, I'm going to talk through some of the differences, like why we need more information for these returns and what information you should start gathering now to help prepare for the upcoming filing for the 2024 tax year.[00:02:18] So I'm trying to give you a little bit of a head start. It's quarter four, so you have time to either find and hire a good bookkeeper to help you get books before the end of the year or start gathering all of the information I'm going to talk about so that you have a jump on all of the information your accountant is going to need. If you go to a tax professional and they're not asking for all of this information, while they might technically be doing your tax return, they're doing it in the most surface level numbers on forms way possible.[00:03:00] What kind of talk about that a little bit more. But I recently had a new client who went to a large well-known tax and attorney firm. And last year for their entity return, where they didn't have full books, they just had the client complete an organizer.[00:03:09] So they just used whatever information he told them—whatever amounts for bank account balances, etc. They did not ask for any of the actual documents to check any of this. And if that's the case, there's close to a 0% chance your return is accurate.Costs of Entity Creation[00:03:27] So let's dive into it. Let's start off with what happens when you create a partnership or an S-corporation.[00:03:35] The first thing that I want people to consider when they are creating a partnership or creating an S corporation is that this creates a whole new, additional tax return. So there's a whole separate filing. Even though something might not have changed with your business last year, you might've had two rentals and they were on your personal return, and this year you have two rentals and now they're in a partnership, there's a whole additional filing.[00:04:05] Entities require more information. There's more we have to track, and there's more you have to do. So the first consideration I want you to be aware of if this is going to be your first year with a partnership or an S-corp is that it's going to cost more money if you go somewhere to have your taxes done.[00:04:21] Now how much more it's going to cost, I can't say for sure because different firms, different locations, and different levels of expertise or specialization are going to impact that pricing. But like with anything, there's going to be higher-end and lower-end and everything in between. The same way you can get a steak at an Applebee's for $8.99, or you can go to a Ruth's Chris and pay $89, it's across the board.[00:04:50] The price point I most often see for entity preparation at better tax firms is going to be a minimum of $1,500 to $2,000 per return for just the filing.[00:05:02] So keep that in mind when you're looking to create an entity or switch over to being a partnership or an S-corp. Kind of pencil in that ballpark number into your mind as an additional cost. And that number tends to surprise people when they have multiple entities. I think because the big picture price point can add up really quickly, and it's not expected.[00:05:57] If you look at one of the commonly well-known self-prepare software online, you can do your own entity return. It costs $800 for you to do it yourself with their software or $1,750 for you to have one of their quote tax professionals do it for you. If it's going to cost you $800 just to do it yourself, if you're going to a firm and an expert is doing it for less than that, to me, that would be a little bit of a warning.[00:06:00] I would just be a little cautious there.Bookkeeping vs. Tax Preparation[00:06:02] So now you're aware of the additional costs that can come into play for just the filing. What else might you run into? Well, the next consideration is that bookkeeping and tax preparation are typically separate engagements.[00:06:50] So if you are expecting to give someone a pile of receipts and bank statements and all of that, and have them organize it into categories and make sure everything ties together, and then use that ending information of total costs for all of your different expense categories to then prepare a tax return, that is bookkeeping.[00:06:50] So if they're starting with raw information that's not organized at all for the whole entire year, that's going to be an additional cost. That would be a whole separate cost. So be aware of that. If you do not have formal bookkeeping, you don't have QuickBooks and a bookkeeper, at the very least you will want to make sure you have the following information together ahead of time for your tax professional, unless you are also intending to pay for bookkeeping.[00:07:00] If you don't want to do that, you're going to want to listen on because these are the bare mi...

Examples of the 121 Exclusion which showcase how small changes, can lead to huge tax impacts. In this episode of 'Real Estate is Taxing,' host Natalie Kolodij breaks down the intricacies of the 121 exclusion, which allows homeowners to exclude a significant amount of capital gains on the sale of their primary residence. . She details various scenarios to highlight how specific timelines and conditions—such as rental periods, military duty, and temporary absences—affect eligibility for the exclusion. By understanding these nuances, listeners can avoid costly tax errors and optimize their exclusion benefits.IG: @RE_Tax_Strategist Transcript [00:00:00] Welcome to Real Estate is Taxing, where we talk about all things real estate tax and break down complex concepts into understandable, entertaining tax topics. My name is Natalie Kolodij I'm your host, and I am so excited that you've decided to join me.[00:00:23] Have you ever pulled into the McDonald's drive through at 10 40 in the morning on a Sunday to get McDonald's breakfast? Only to find out the location near your house stopped serving breakfast at 10 30, you just missed it. And you were so sure you had till 11 o'clock to get that. Amazing egg McMuffin. [00:00:45] You've been thinking about all week. Imagine that feeling times a thousand or more. That's what today's episode is about. And the best way I could think of. To describe the [00:01:00] impact of when someone thinks they are going to qualify. For the full 1 21 exclusion and have up to a half million dollars tax free. Only to find out that the timing or the way they executed it fell a little bit short. On today's episode. I'm going to walk you guys through several different scenarios of the potential application of the 1 21 exclusion. And really point out the way a few key, little bitty timing impacts. Can lead to either a partial exclusion or in some cases, no exclusion at all. When this comes up, it is obviously something that people are pretty upset to find out. So hopefully hearing this episode ahead of time will prevent a few people from living through that experience. [00:02:00] [00:02:00] And maybe this episode will also remind you to check the cutoff time for your egg McMuffin this weekend. [00:02:06] You are the guardian of your own destiny. So let's get into things, manifest it, and to make sure we are not missing these crucial timing cutoffs. [00:02:16] [00:02:16] If you knew me, you know, the 1 21 exclusion is a code section that I can talk about for hours and hours and hours, there is so much unique complexity to it. For today's episode, we are just going to break it down into a few simplistic parts. We're taking this at a thousand foot view. So that you can recognize the reason why these situations we're going to walk through will or will not work. [00:02:43] And you'll be able to see how these small timing differences can create a huge difference in the taxable outcome. The 1 21 exclusion. Allows a taxpayer to exclude up to [00:03:00] $250,000 of gain or 500,000 if married. On the sale of their primary home, as long as they have owned and occupied it for two out of the most recent five years. [00:03:13] The first nuance to break out. That will relate to today's episode. Is those two out of five years are actually a calculation to the literal day. So two years is actually 730 days. Five years is going to be 1,825 days. For simplicity, we're ignoring leap years. So it is a literal to the day calculation. That's why a slight misjudgment on when you should move or sell, et cetera. Can have a huge impact. The next piece to be aware of for today's episode is something called non-qualified use. In a nutshell, any time when [00:04:00] that primary home. Is used for something other than being a primary home. Those years are considered. [00:04:06] Non-qualified use. And the gain related proportionately to those years. Typically can't be excluded under the 1 21 exclusion. Now this code provision didn't come into play until 2009. So any time of non-qualified use before that. Doesn't count does not come into play here. And there are also three key exclusions. To what is considered non-qualified use. The first one would be any rental use. That occurs after. The taxpayer's most recent use of the home as a primary residence. The second exclusion. Is if someone is active duty military. They can have potentially up to a 10 year gap. Due to [00:05:00] being active duty. Where that time, where the home is rented or not being used as a primary home. That does not count as non-qualified use. And the final exclusion. Is that a taxpayer can have up to a two year temporary absence. That can be disqualified from being non-qualified use. [00:05:21] So if there's a temporary absence of. Two years or less. Due to a health circumstance or a job related change or some kind of major unforeseen circumstance. That two year or less window also does not count against the calculation for the gain as non-qualified use. [00:05:44] Now that you are all filled in on the key items we need for today's episode. Let's run through these examples. In all of the examples I am going to walk through. We are assuming that the taxpayer [00:06:00] originally buys this property to be a primary residence the day they buy it, it is for the purpose of moving in and living in this house. So example one. Taxpayer purchases, the primary home. They own and occupy it for 730 days. [00:06:21] And then. They decide to sell the residence. They have occupied it and owned it for two years or more. That's 730 day mark. So in this scenario, they would qualify for their full amount of the 1 21 exclusion. [00:06:37] Situation too. The taxpayer purchases, a primary home. They own and occupy it for 720 days. And then they go to sell the home. Because they were shy of that 730 day mark. The amount of exclusion they qualify for is [00:07:00] going to be $0. That two year minimum. Is required unless there's an unforeseen circumstance. We're not getting into that in today's episode. So if they just decided to sell because they wanted to, there was no other reason. If they have only lived in it for that 720 days. They don't get any part of an exclusion. [00:07:26] There's no rounding. If they have only met that 720 day mark. Their entire gain is going to be taxable. There will be no 1 21 exclusion. [00:07:39] So are you starting to see why these slight differences in a calculation can have a huge impact? Let's get into a few more tricky circumstances. In the next example. Let's say the taxpayer purchases, a primary home. They own and occupy it for [00:08:00] 750 days. They then move out and rent it for 1000 days. That's 750 days gets them that two year minimum of at least seven 30. And as long as they rent it for no more than three years. They don't have any non-qualified use and they still have their full 1 21 exclusion. Three years would be 1095 days. So in this example, because the taxpayer did occupy for the minimum of 730 days. And then they did not rent it for any more than three years or 1095 days. They can sell the home at the end of this and receive their full 1 21 exclusion. The only thing that will be taxable. Is, they will have, do have payback of the depreciation they took while it was a rental. [00:08:53] There's going to be unrecaptured 1250 depreciation or some depreciation recapture. But otherwise. [00:09:00] That circumstance allows for a full 1 21 exclusion. The fact that it was ...

 3 Common Mistakes When Issuing 1099 FormsEpisode 17: Hiring Your Kids: Tax Savings Strategy Or Really Risky Move https://www.natalie.taxhttps://www.incite.taxIn this episode of 'Real Estate is Taxing,' host Natalie Kolodij breaks down the three  common mistakes made by business owners when issuing 1099 forms. She discusses the misclassification of children employed in the business, the obligations of landlords operating rental properties, and the incorrect issuance of 1099s to owner shareholders who should be receiving wages. 00:00 Introduction to Real Estate Taxing00:23 Common Mistakes in Issuing 1099s00:44 Employing Your Children: Tax Strategies and Pitfalls03:36 Landlords and 1099 Requirements06:38 1099s for Shareholders: Avoiding Common Errors11:20 Conclusion and Final Advice

Maximize Tax Benefits by Employing Your Children: Key Strategies and Pitfallshttps://www.natalie.taxhttps://www.incite.taxIn this episode of 'Real Estate is Taxing,' host Natalie Kolodij delves into the strategy of employing your children in your business. She outlines the numerous benefits, including significant tax savings and the opportunity to fund a Roth IRA at an early age. Natalie also discusses crucial compliance requirements to avoid costly mistakes, such as treating the children as actual employees, paying reasonable wages, and issuing W-2 forms instead of 1099s. The episode provides essential guidelines to help business owners implement this strategy correctly and reap the financial advantages.00:00 Introduction to Real Estate Taxing01:41 Why Employing Your Children is Beneficial02:29 Tax Benefits of Employing Your Children08:17 Common Mistakes to Avoid13:50 Entity Types and Payroll Taxes14:55 Proper Documentation and Compliance23:59 Recap and Final Thoughts

Why Purchase Price Doesn't Matter When Deciding If You Should Do A Cost Seg Tax Professionals- https://www.incite.tax/In this episode of Real Estate is Taxing, host Natalie Kolodij delves into the complexities of cost segregation studies. She explains what they are, their benefits, and crucially, when they should be considered by real estate investors. With detailed analysis, she outlines different scenarios, including how depreciable value and income levels affect the decision-making process. Natalie also touches upon practical considerations like DIY studies, professional studies, associated costs, and tax implications, offering a well-rounded understanding of this often misunderstood tax strategy.00:00 Introduction to Real Estate Taxing01:59 Understanding Cost Segregation Studies03:51 When to Consider a Cost Segregation Study04:13 Types of Cost Segregation Studies04:51 Cost and Feasibility of Studies06:17 Depreciable Basis and Property Value08:59 Utilizing Losses and Tax Benefits13:21 Special Considerations and Strategies20:13 Conclusion and Community Invitation

Sign Up For 4 Websites To Earn Free AA Miles: AAdvantage Shopping Portal: https://www.aa.com/web/i18n/aadvantage-program/overview.htmlSimply Miles Portal : https://www.simplymiles.comShell Fuel:  https://www.shell.us/motorist/ways-to-save/american-airlines-teams-up-with-shell-and-the-fuel-rewards-program.htmlSurveys For Miles:   https://www.milesforopinions.com Unlocking Free American Airline Miles: Simple Hacks and TipsIn this episode of Real Estate is Taxing, host Natalie Kolodij shifts gears from tax topics to explore travel hacking. 00:00 Introduction to Real Estate is Taxing00:27 Today's Special Topic: Travel Hacking01:20 Earning American Airline Miles: An Overview04:04 Method 1: Taking Surveys for Miles05:38 Method 2: Earning Miles at Shell Gas Stations07:09 Method 3: SimplyMiles Program10:57 Method 4: AAdvantage Shopping Portal18:42 Advanced Tips and Conclusion 

And Why "You Can't Buy a Primary Home With A 1031 Exchange" Is wrong. Facebook Groups: Tax Professionals ---> https://www.facebook.com/groups/realestatefortaxprosReal Estate Investors ---> https://www.facebook.com/groups/REIKnowledgeVaultEpisode Topic Suggestions --> Contact@Cretaxstrategist.comLike the Show? ---> Rate it 5 ⭐️ In this episode of 'Real Estate is Taxing,' host Natalie Kolodij delves into the synergy between two tax code sections: the 1 21 exclusion and the 10 31 exchange. She explains the primary conditions under which each applies and explores scenarios where both can be utilized together in cases of mixed-use properties or properties transitioning between personal and business usage. Natalie also provides insights on handling depreciation recapture and answers common questions about using these provisions to maximize tax advantages. Join her for a detailed discussion aimed at demystifying complex tax strategies in real estate.00:00 Introduction to Real Estate Taxing00:52 Understanding the 1 21 Exclusion02:04 Exploring the 10 31 Exchange02:39 Combining 1 21 Exclusion and 10 31 Exchange02:54 Mixed-Use Properties and Tax Benefits05:04 Switching Between Primary Residence and Rental10:04 Depreciation Recapture and Tax Strategies12:39 Common Questions and Scenarios20:14 Conclusion and Final Thoughts

Join The Conversation On Facebook - Tax Professionals - https://www.facebook.com/groups/realestatefortaxprosReal Estate Investors - https://www.facebook.com/groups/REIKnowledgeVaultWant To Attend An Event or Have Natalie Speak at Your Event?Upcoming Speaking and Teaching Events - https://www.natalie.tax/Referenced In This Episode: TC Summary 2017-31  -https://casetext.com/case/nielsen-v-commr-2In this episode of 'Real Estate is Taxing,' host Natalie Kolodij discusses the intricacies of real estate tax, focusing on depreciation and the importance of allocating land and building value when setting up a rental property. Natalie explains how depreciation allows rental property owners to write off the value of the building and improvements over time, emphasizing that land cannot be depreciated because it does not wear out. She outlines acceptable methods for dividing purchase price into land and building values. Natalie also debunks common misconceptions and provides guidance on ensuring accurate depreciation schedules. 00:00 Introduction to Real Estate Tax Education00:27 Upcoming Tax Education Opportunities01:40 Deep Dive: Depreciating Rental Properties02:31 Understanding Depreciation: The Basics03:21 Adding Costs to Your Property's Basis04:07 Navigating Escrow and Loan Costs09:38 The Importance of Separating Land Value16:04 Choosing the Right Method for Land Valuation21:27 Avoiding Common Depreciation Mistakes27:20 Conclusion and Invitations

Get ready for the ultimate real estate adventure as the BiggerPockets Conference (BPCON) 2024 heads to the tropical paradise of Cancun, Mexico, Oct. 6-8. International travel is always exciting, but knowing it can also be tax-deductible really takes things up a notch.  Traveling outside the United States for business can be a little tricky when it comes to taxes, but don't worry—we're here to guide you through everything you need to know. Learn more about your ad choices. Visit megaphone.fm/adchoices

In this episode of Real Estate is Taxing, host Natalie Kolodij discusses the misconceptions about using rental property losses for those not identified as real estate professionals. She clarifies that passive losses from long-term rentals can still be utilized to offset passive income, highlighting the tax advantages of rental income and explaining passive activity loss rules.  Finally, Kolodij teases a future episode dedicated to reducing or eliminating unrecaptured Section 1250 gain, inviting listeners to subscribe for more insightful tax planning tips.00:00 Introduction to Real Estate Tax Insights00:35 Debunking Real Estate Tax Myths01:41 Understanding Passive Income and Losses03:10 Maximizing Passive Losses: Strategies and Benefits04:44 The Power of Depreciation in Real Estate09:28 Navigating Passive Loss Limits and Opportunities13:56 Planning for Future Tax Benefits with Passive Losses18:15 Depreciation Recapture: What You Need to Know22:36 Conclusion and Teaser for Next Episode

Need to estimate rehab costs or calculate ARV (after-repair value) on a property? For new investors, these tricky tasks can often make or break a deal. But, as always, our hosts are here to deliver some helpful tips!   Welcome back to another Rookie Reply! After diving into rehab costs, discussing hard money, and weighing the pros and cons of FHA loans, real estate tax strategist Natalie Kolodij returns to the show to deliver some extra tax advice. She talks about passive losses and why you need to carefully track them from year to year, as well as how tax benefits are allocated in real estate investing partnerships. Stick around until the end to learn the ONE mistake you can't undo on your tax return! If you want Ashley and Tony to answer a real estate question, you can submit a question here, post in the Real Estate Rookie Facebook Group, or call us at the Rookie Request Line (1-888-5-ROOKIE). In This Episode We Cover How to estimate rehab costs and calculate after-repair value (ARV) The pros and cons of FHA loans (and when to get a conventional loan instead!) How to find the right hard money lender for your next deal Why you NEED to track your passive losses (even if you can't use them this year) The ONE tax benefit you can never get back if your taxes are filed incorrectly Using losses to offset earned income with the short-term rental “loophole” How tax benefits are allocated in a real estate partnership And So Much More! Check the full show notes here: https://www.biggerpockets.com/blog/rookie-371 Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Email: advertise@biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Want to pay less money to the IRS in 2024? We've got the real estate tax strategies to help you do just that. And get this—you don't need a large real estate portfolio to benefit from these money-saving tax tips! Welcome back to the Real Estate Rookie podcast! Today, real estate tax strategist Natalie Kolodij lends her expertise on the many tax benefits of real estate investing. Natalie is not only a certified public accountant (CPA) but also a fellow investor, and in this episode, she shares the unique real estate investing strategy she used to get started—flipping mobile homes! She also dives into the different types of partnerships and their tax advantages, as well as common house hacking misconceptions that cause new investors to miss out on important deductions. Need to sell a property? You'll want to know about the exclusion that allows you to avoid capital gains tax. Natalie even gets into the short-term rental “loophole” that investors can use to reduce their taxable income each year. Of course, you don't need to master the tax code before buying your first property—you just need to find a tax professional who specializes in real estate. So, Natalie offers three questions you MUST ask before hiring one! In This Episode We Cover: Must-know 2024 tax strategies for the small rookie investor Crucial real estate questions to ask a tax professional before hiring them How to plan and file taxes for different types of partnerships Common house hacking misconceptions that cost investors thousands of dollars The short-term rental “loophole” that allows you to reduce your taxable income How to dodge capital gains tax when selling your investment property The most common tax mistakes that new investors make (and how to avoid them!) And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Submit Your Real Estate Rookie Question! Apply to Be a Guest on the “Real Estate Rookie” Podcast Hear Natalie on the “BiggerPockets Money” Podcast What You Need to Do NOW to Pay Fewer Taxes in 2024 How to (Legally) Avoid Taxes by Investing in Real Estate Seeing Greene: CPAs Answer YOUR Top Investing and Tax Questions The Biggest Real Estate Tax Loophole You've (Probably) Never Heard Of Connect with Natalie: Natalie's BiggerPockets Profile Natalie's Facebook Natalie's LinkedIn Natalie's Instagram Natalie's Website Check the full show notes here: https://www.biggerpockets.com/blog/rookie-368 Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Email: advertise@biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Have you ever, at any point, considered niching down, specifically in real estate? It might be time to revisit that thought. Natalie Kolodij joins us on this episode to share her noteworthy success as a real estate tax strategist. Her journey is a testament to the power of specialization and the impact it can have on your accounting or tax firm. Discover how Natalie went from an average client fee of $700 to $7,000, reduced her client load, and increased her annual revenue to the point where she's approaching seven figures. This episode is filled with insights on pricing, client management, and building a strong presence in real estate communities, both online and offline. If you're looking to work less, earn more, and create a waiting list of eager clients, don't miss this episode!

Listen up! If you have property investments or are looking to invest in real estate this is a must listen for you. Natalie Kolodij is a real estate tax strategist. In this interview we discuss tax advantages for owning properties, how to save lots of money from your rentals, and how to take full advantage of your short term rental properties, and much much more!

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Is cost segregation worth it for small real estate investors?In this episode of The Real Estate Mindset podcast, my co-host Ben Nelson and I chat with Natalie Kolodij about the tax advantages you can reap the benefits of when you invest in real estate. She shares the common mistakes she finds that people make in their taxes and tax-saving opportunities that many people tend to skip over.Natalie also shares her experience with coaching, what books she recommends, and what her morning routine is like.What we discuss:00:14: About Natalie01:35: How does Natalie work?06:48: What are Natalie's thoughts on cost segregation?08:45: How do you qualify for a real estate professional designation?11:23: What are passive losses?13:42: What can happen to your schedule if you change accountant?17:57: The truth about your tax situation in real estate19:12: How can you save taxes on gains from the sale of a property?21:18: Is depreciation optional?27:01: What are the main errors people make in their taxes?35:35: What is Natalie's morning routine?38:03: What books does Natalie recommend?42:40: What is Natalie's experience with coaching and mentorship?To learn more about Natalie:Website: https://www.kolotax.com/aboutInstagram: https://www.instagram.com/re_tax_strategist/To learn more about us:Website: https://www.wildoakcapital.com/Instagram: https://www.instagram.com/wildoakcapital/Course: https://www.ericnelsoncoaching.com/

Tax planning is an integral part of financial planning, which is essential to the success of a business. Natalie Kolodij is an IRS Enrolled Agent who working exclusively with Real Estate Investors for almost a decade. An active real estate investor and FIRE enthusiast, she understands the need to pay as little tax as legally possible while ensuring you continue to qualify for the financing you need to grow. In this episode, Natalie will share the benefits of using tax strategies, discuss questions for real estate investors, and advise real estate investors and bookkeeping guidance. Furthermore, she will provide details on short-term rentals and how the “lazy 1031” can benefit passive investors.   HIGHLIGHTS FROM THE EPISODE 1. Natalie's journey into real estate 00:00 - 3:01 2. Seeking tax guidance 3:01 - 4:59 3. Questions for real estate investors 4:59 - 7:08 4. Advice for real estate investors 7:08 - 9:40 5. Recommendations for bookkeeping 9:40 - 11:31 6. Key points of short-term rentals 11:31 - 16:16 7. CPA and tax strategies 16:16 - 19:40 8. Definition of 1031 19:40 - 24:02 9. Ways to contact Natalie 24:02 - 25:30   CONNECT WITH THE GUEST LinkedIn- https://www.linkedin.com/in/nkolodij/ Website- kolotax.com   CONNECT WITH THE HOST Website- https://upstreaminvestor.com/ Facebook- https://www.facebook.com/TwoSmartAssets/ Instagram- https://www.instagram.com/upstreaminvestor/ Twitter- https://twitter.com/twosmartassets LinkedIn- https://www.linkedin.com/company/two-smart-assets/ ----------------------------------------------------------------------------------------------------------------------- Listen, like, subscribe, and comment!

Our guest Natalie Kolodij is your MUST KNOW real estate tax strategist. Note that we said “strategist”, not “preparer”! There's an important difference between the two. More than your typical tax professional, Natalie has built a business around helping real estate investors maximize their tax savings and to compound with additional investments. Natalie practices what she preaches through her mid- and short-term AirBnB rental business. One thing that really stood out to us in our conversation was the importance of working with financial and tax professionals that are in your line of business and do what you do. This ensures that you're receiving the most up-to-date information and strategies. With it still being the beginning of 2023, you won't want to miss this show to learn some proactive tax strategies for the year!You can connect with our guest on Instagram @retaxstrategist and kolotax.com.Do you have any questions you'd like for us to answer on the show, or a success story you'd like to share? Shoot us an email to info@TheRealFI.com and we'd be happy to connect with you. And If you haven't done so already, please leave us a glowing 5 start review on your podcasting platform–it would really help us out!You can connect with you hosts on instagram:James on Instagram: @James_RippeonPatrick on Instagram: @RentalPropertyCoupleLet's kick the 9 to 5!Decide. Commit. Take Action!

Natalie Kolodij is a Real Estate Investor, IRS Enrolled Agent, and Real Estate Tax Strategist. She has been on multiple real estate podcasts including Bigger Pockets Money, Weiss Advice, and InvestHer. She was recently a Speaker on the Bigger Pockets Con 2022 Tax Panel. You can learn more about Natalie at https://kolotax.com and https://retaxstrategist.com.

Every year, tax day comes as a major headache for most real estate investors. However, what most don't know is that working with an accountant that specializes in real estate tax can actually save you thousands of dollars yearly!In this week's episode, our hosts welcome Natalie Kolodij, founder of Kolodij Tax & Consulting, a tax firm that specializes in minimizing tax costs for real estate investors who are looking to maximize their growth. Natalie has made it her life mission to help real estate investors gain financial independence through tax strategies and financial education. Join us this week as she shares her insider tips and tricks for finding the right locations to invest in, vetting the perfect accountant, and leveraging tax knowledge to save on costs every year.PODCAST HIGHLIGHTS:[4:16] Natalie's Beginnings to Financial Independence[6:15] How Natalie Began Flipping Mobile Homes With No Experience[12:59] Financing for Mobile Homes[13:51] How to Land Surprisingly Good Deals[18:40] Pros and Cons of Renovating Mobile Homes[21:36] CPA vs EA: What's the Difference?[23:21] How Specializing in Taxes Can Give You an Edge in Real Estate[27:24] Diving Into Mid-Term Rentals as a First-Timer[32:00] Watching Out for the Upcoming Real Estate Boom[36:36] How to Pick the Best Accountant for Real Estate Needs[40:54] Natalie's Insider Cost-Saving Strategies[43:55] Learn From Natalie's Next Big Move[47:12] Speculating the Demand for a 2-Bedroom House[48:20] Natalie's Biggest Advice to Real Estate InvestorsAffiliate Links:1. Don't miss out on resources of great value for real estate starters. Visit FITeam's website! — https://www.thefiteam.com/  2. Join a supportive community of over 1200 passionate like-minded investors! You can find your very first short-term or medium-term rental here, as well as accountability buddies and bi-weekly webinars: AirBnB Investing - https://www.facebook.com/groups/airbnbinvesting 3. Listen to Natalie's video with Mindy Jensen from BiggerPockets about what every real estate investor needs to have before tax day - https://www.youtube.com/watch?v=GoL9LB0uEME 4. Check out Natalie's book recommendation: Published: The Proven Path From Blank Page To 10,000 Copies Sold by Chandler Bolt - https://www.amazon.com/Published-Proven-Blank-Published-Author/dp/1539412334 5. www.rentredi.com and use our CODE: INVEST2FI to get 50% off on their first 6 months.www.rentredi.com — CODE: INVEST2FI6. Kaplan Real Estate Education (we have the recording as well)They can go to the website -https://www.kapre.com/and use our CODE - Invest27. AirBnB Hosting courseThis course is designed to walk you step by step from purchasing a property, setting it up to rent, to becoming an AirBNB SuperHost.You can register FREE COURSE here:https://www.stepbystepbnb.com/a/2147508384/zG79Sujh

In this episode, Natalie Kolodij and I discuss Multiple ways to generate Tax-Free Income with real estate. So if you want to Avoid the most common Real Estate Tax Mistakes, Understand your tax return and what questions to ask your Tax Advisor, and how to save on taxes by employing your children so you can learn Multiple ways to generate Tax-Free Income with real estate, tune in now! In this episode, you'll discover: “Avoiding the most common Real Estate Tax Mistakes” Numerous Tax benefits of real estate Understanding your tax return and what questions to ask your Tax Advisor Creating Generational Wealth through Employing your children Stop your planning for Tik and IG and learn to dig deeper Curtis's motto is that what you learn today and how you position yourself will determine your future financial well-being 5, 10, 20 years from today. To learn more about how to manage your wealth in a practical way, visit www.practicalwealthadvisors.com  Who's The Guest? Natalie Kolodij is an IRS Enrolled Agent and Real Estate Tax Strategist™. She's worked exclusively with real estate investors since 2017 and cultivates tax strategies for those who are building wealth through real estate. She started her investing journey by flipping mobile homes to resell on owner financing and now focuses on buy and hold. Links and Resources from this Episode www.practicalwealthadvisors.com Email Curtis for a free report - curtmay@gmail.com Call his office - 610-622-3121 Coffee Connects with Curtis Connect with Natalie Kolodij https://www.kolotax.com/ https://www.youtube.com/channel/UCofp5qyVGbdVcCR3yV0l15A https://www.instagram.com/re_tax_strategist/ https://www.facebook.com/Kolotax/ https://www.linkedin.com/in/nkolodij  Special Listener Gift Schedule a 15-Minute Call with Curtis Creating a Mindset that Leads to Lifestyle Liberation Show Notes Who is Natalie Kolodij? How she got started in the field Benefits of real estate investing Why should you hire a tax professional for your business? Pros and cons of investing in a 401k Different types of real estate investments and their tax implications Tax benefits for rental properties Things to look out for when hiring a tax professional Types of costs that you may encounter when renting out a property Cost segregation for real estate renovations Different types of real estate tax benefits Employing your children Benefits of paying your kids to work for your business Paying for a salary versus giving an allowance Setting up payroll and filing taxes for kids at work Income shifting for real estate investors Withholding the right amount of taxes Understanding your taxes Why should you file your taxes early? How to reach out to Natalie Review, Subscribe and Share If you like what you hear please leave a review by clicking here Make sure you're subscribed to the podcast so you get the latest episodes. Click here to subscribe with Apple Podcasts Click here to subscribe with Spotify Click here to subscribe with Stitcher Click here to subscribe with RSS

It's quickly approaching the end of 2022 and we thought we'd give our listeners some Golden Nuggets on Tax Savings Strategies with none other than Natalie Kolodij. For those that don't know, Natalie has quickly blown up as the go to Tax Strategist for Real Estate Investors. Natalie's Instagram and tiktok accounts (all linked below) are filled with tons of golden nuggets on ways to save on taxes as well as some mistakes that some tax professionals may be making on your tax returns. Natalie goes over all of this and more in this week's episode. Getting started in Real Estate with Mobile Home Flipping - 8:19Starting A Tax Consultant Business - 18:53Bonus Depreciation and Cost Segregation - 24:251031 Exchanges & DST's - 35:40Choosing The Right Tax Professional - 44:32REPS, IRS Hiring & Avoiding Audits - 50:03OT - 55:36You can Join the Omaha REIA at https://omahareia.com/ Omaha REIA on facebook https://www.facebook.com/groups/OmahaREIA Check out the National REIA https://nationalreia.org/ Find Ted Kaasch at www.tedkaasch.com Owen Dashner on Facebook https://www.facebook.com/owen.dashner Instagram https://www.instagram.com/odawg2424/ Red Ladder Property Solutions www.sellmyhouseinomahafast.com Liquid Lending Solutions www.liquidlendingsolutions.com Owen's Blogs www.otowninvestor.com www.reiquicktips.com Natalie Kolodij https://www.kolotax.com/about Natalie's Advising Packages https://retaxstrategist.com/ Natalie on IG https://www.instagram.com/re_tax_strategist/ tiktok https://www.tiktok.com/@re_tax_strategist LinkedIn https://www.linkedin.com/in/nkolodij Maddison Specs https://www.madisonspecs.com/ If you like the content on Omaha REIA Radio, Be sure to give us a review on your favorite podcast platform to help others find us and leverage the knowledge and experience our hosts and guests have to offer. We greatly appreciate you for tuning in and see you in the next episode!! 

With 2022 drawing to a close, tax season is nearly upon us. This week on the podcast we are joined by our friend, Natalie Kolodij, a Real Estate Tax Strategist who is sharing her expertise with us on what we should be doing to prepare for tax season when it comes to REI. Natalie is an IRS Enrolled Agent and Real Estate Tax Strategist who has been working exclusively in real estate since 2014. Natalie is highly specialized in her niche and loves helping people get set up with the right strategies to really work on building their wealth in the most effective way they can.The first thing we cover in this episode is how you can save on taxes by having your rental property transition (temporarily) to a short-term rental property, before turning it into a long-term or mid-term rental. One of the key things with normal rentals, long-term rentals, or even mid-term rentals, is that they're in the same category for taxes called ‘passive income' to the government, meaning that you don't pay any payroll taxes on it. But a trade-off there is that when a passive activity like a rental creates a loss, you can't always use it, depending on your circumstances. There are certain circumstances where you can, and some circumstances when you can't. So typically, if your annual income is above $100,000, you might not be able to use that loss. It can always offset other passive income, but not your W-2's or other income types. It's in its own bucket and that is passive loss limit. You don't lose it, but rather it carries forward into the next year. Short-term rentals are a unique hybrid area where if you have a short-term rental, where the average stay is 7 days or less, then it can qualify as non-passive. By breaching that nonpassive designation, any losses you create are no longer subject to that income limit and there's no true cap on that. So with a short-term rental, you can do something like utilize cost segregation, where you push some of your depreciation up to the front end, have a big loss in one year, and be able to fully deduct it against your earnings from your W-2 job (or flipping income or any other types of income). It creates a really great loophole. In this episode, Natalie shares so many great tips and tricks, just like this, about how to prepare yourself for tax season, find the right accountant for your business, and so much more, in a way to help set you up for a stress-free tax season. She also shares her Year End Tax Prep Checklist for Real Estate Investors with our listeners. Want to connect with Natalie or find out more about her current client offerings? Shoot her a DM on Instagram or visit her website to learn more!Thank you for listening, friends! We'll catch you in the next episode!   ResourcesGrab Natalie's Year End Tax Preparation ChecklistVisit Natalie's WebsiteConnect with Natalie on InstagramGrab your ticket to our 2023 retreat in retreat in Salt Lake City

If you talk about how to avoid taxes, most people will think you're doing something fishy in the eyes of the IRS. Very few know you can use the tax code to massively lower your year-end burden, all while making an ordinary income. Real estate investors have been doing this for years, using so-called “tax cheat codes” like depreciation and cost segregation studies to write off massive paper losses on their taxes. But how do they do it, and if you're an investor, can you do the same?Natalie Kolodij, IRS Enrolled Agent, works exclusively with real estate investors to lower their taxes as much as legally possible. She knows the tricks of the trade that allow investors to not only pay less at the end of the year but grow their businesses more efficiently so financial freedom comes even faster! Natalie is also an active real estate investor and part of the FIRE movement, so if there's one person who knows the right tax moves to make, it's her!Natalie gives us a masterclass on how investors can lower their 2022 taxes as the year comes to an end, how to set yourself up for a successful 2023, and the massive real estate tax write-offs you should be utilizing. She also touches on how much CPAs and tax preparers can cost, when to start strategizing your taxes, backdoor Roths, and how to legally pay your children tax-free income so they get a boost on their financial future.In This Episode We CoverYear-end tax tips to lower your 2022 taxes as much as possibleWhen to hire a CPA or tax preparer (and how much they'll cost you)2023 tax deductions for real estate investors and what you should take advantage of NOWHow to get your children investing early with tax-free income from your businessThe biggest tax mistakes that investors make and why you may be overpaying in taxesCost segregation studies, bonus depreciation, and how to cancel out the capital gains of a home saleAnd So Much More!Links from the ShowFind an Investor-Friendly Real Estate AgentBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingMindy's TwitterListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Subscribe to The “On The Market” YouTube ChannelListen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPocketsCheck Out Mindy's 2022 Live Spending Tracker and BudgetChoosing the Right Tax Professional for YOUR Specific NeedsBiggerPockets Money Bonus Episode: CARES Act: Everything You NEED to Know About the Coronavirus Stimulus PackageLandlord Tax Loopholes That'll Help You Pay ZERO Taxes in 2022Click here to check the full show notes: https://www.biggerpockets.com/blog/money-360Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Natalie Kolodij is the CEO of Kolodij Tax and Consulting, and she is also a real estate investor herself. She uses her investing experience to help other investors out in the tax world. Natalie gives advice on how to determine depreciation and shares examples of what you should specifically do. In this episode, Natalie digs into the tax advantages or potential tax advantages of specific short term rental investing strategies and ways that you may be able to write things off of your active income by using short term rentals.She also talks about depreciation and cost segregation and a lot of things around this space.     [00:01 - 05:15] Opening Segment Natalie shares how she got her start as a real estate tax strategist You don't need a license to do your own taxes Work with someone who is certified and has experience in doing taxes   [05:16 -13:27] Tax Strategies for Short Term Rentals Short term rentals can be converted to be non passive and have access to write off limits Per the tax code, any asset with a life of less than 20 years qualifies for a write off  As a real estate professional, any of your real estate losses are now non passive Deductible with no limit every year as incurred  Can be offset with any other income with those losses for real estate Real estate professional status does not matter for this specific short term rental strategy    [13:28 - 25:34] Qualifying for Real Estate Professional Status  Tracking your hours while you are working on real estate Don't force the situation when you know you don't qualify for the status There's is a big risk in fluffing up the numbers  Talk to a tax professional about how cost segregation can help benefit you Natalie shares the benefits and disadvantages of getting a professional tax person early on    [25:35 - 30:01] Closing Segment Quick break for our sponsors The first step to growing your wealth is tracking your wealth, income spending and everything else about your finances, you can start tracking your wealth for free and get six free months of wealth advisor. Learn more about Personal Capital at escapingwallstreet.com  What is the best investment you've ever made other than your education? The first mobile home that she flipped Natalie Kolodij's worst investments  A guru seminar she bought after finishing college  What is the most important lesson you've learned in business and investing? Consistency and relationships     Connect with Natalie Kolodij: Website: https://www.kolotax.com/ Email: natalie@kolotax.com Social media: Facebook, Instagram, Tiktok     Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/ Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your own terms. Join our Passive Investor Club for access to passive commercial real estate investment opportunities. LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or click here to listen to our previous episodes             Tweetable Quotes: “A good tax professional isn't cheap, but a cheap tax professional isn't good.” - Natalie Kolodij “ A lot of people can never reach real estate professional status if they love their jobs, they're never gonna do real estate full time.They're never gonna have that option. So this is sort of an alternative. Let's look at short-term rentals, if this works for your investing goals and your plan.” - Natalie Kolodij   “If you are networking consistently, talking to people, consistently putting out information consistently, You will find deals, and you will find those relationships that take you to find deals.“ - Natalie Kolodij    

Natalie Kolodij is an IRS Enrolled Agent who has been involved in tax and real estate since 2014. A long-time bigger pockets moderator, she has a passion for all things real estate. In 2017 she founded Kolodij Tax and Consulting, a real estate exclusive tax firm. When she's not working she enjoys reading, traveling, and making pottery. In this episode, Natalie shares her experience being a moderator on Bigger Pockets and the various tax benefits of owning and operating a business in real estate. She discusses a few examples such as bonus depreciation, cost segregation, and the gas station loophole. Tune in to learn more![00:01 - 09:24] Opening SegmentWelcoming Natalie to the showBrief background and careerWhat is it like to be a moderator on Bigger Pockets?[09:25 - 22:13] Real Estate Tax StrategiesThe short-term rental market has its own rulesHow active do you need to be to manage an Airbnb?Bonus depreciation is a tax break that can be used to write off expenses related to owning or operating a businessGas stations are an undervalued asset class that could be worth investing inNatalie talks about not staying in a little four-by-four box [22:14 - 28:24] THE FINAL FOURWhat's the worst job that you ever had? What's a book you've read that has given you a paradigm shift?Go for No by Richard FentonWhat is a skill or talent that you would like to learn?What does success mean to you?Quotes:“Keep your eyes open! There's no wrong way to do real estate.” - Natalie Kolodij “It's not like most people want a jet and be billionaires. Most people just want to be able to take family vacations and take Fridays off for barbecues and all those things.” - Natalie Kolodij Connect with Natalie through Facebook and Instagram.LEAVE A 5-STAR REVIEW by clicking this link. WHERE CAN I LEARN MORE?Be sure to follow me on the below platforms:Subscribe to the podcast on Apple, Spotify, Google, or Stitcher.LinkedInYoutubeExclusive Facebook Groupwww.yonahweiss.comNone of this could be possible without the awesome team at Buzzsprout. They make it easy to get your show listed on every major podcast platform.Support the show

https://www.biggerpockets.com/blog/depreciation-deductions-2022See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Struggling with low wages? Can't afford to contribute to an IRA. There may be help! This week on Queer Money we interview Natalie Kolodij, a tax accountant, about the Savers Tax Credit and how it can provide assistance in saving for retirement for folks with lower wages.  For the resources and to connect with our guests, get the show notes at: https://queermoneypodcast.com/subscribe

The crew continues the previous weeks conversation with Natalie Kolodij on taxes.

Russell Brazil, Sara Frank and Jack Seiden talk to Natalie Kolodij about all things tax related to real estate. Visit Natalie at her website https://www.kolotax.com/

Today's guest is Natalie Kolodij, from Kolodij Tax & Consulting. She has invested in mobile homes and short-term rentals since 2014. In 2017, Natalie left her job to dive full-time into the real estate space. Through these years she found that investors lacked the specialized acumen which was needed for investors. Get the show notes at www.ushacapital.com/ep164Book Resources4 Hour Work Week - Timothy Ferriss7 Habits Of Highly Effective People - Stephen R. CoveyClockWork - Mike Michalowicz Connect with Natalie KolodijWebsite: https://www.kolotax.com/Facebook: https://www.facebook.com/Kolotax/Linkedin: https://www.linkedin.com/in/nkolodij/Connect with Rama KrishnaWebsite: www.ushacapital.comEmail: info@ushacapital.comLinkedIn : https://www.linkedin.com/in/rama-krishna-2489241a3 

Do you want to increase profit? Avoid tax mistakes. Host Sam Wilson welcomes Natalie Kolodij, the CEO of Real Estate Tax Strategist. Natalie shares with Sam how it's a common mistake for real estate investors to mix up bank accounts. The easiest way to keep track of all of your taxes is to use one bank account for all of your real estate finances. Another common mistake? Not paying attention to carryovers. If you have a rental and can't use your losses in that year, they roll forward to the next year. Join in the conversation to learn more about avoiding tax mistakes. Tune in and increase your profit!Love the show? Subscribe, rate, review & share! https://www.brickeninvestmentgroup.com/podcast

If you own short term rentals… YOU MUST TUNE IN to this podcast! The info that Natalie Kolodij shares could save you thousands of dollars on your tax return. Make sure you're not doing this wrong!

Check out the video version at https://www.youtube.com/watch?v=bpgksEuKLVQ&t=312s

Natalie Kolodij is the foremost expert when it comes to tax planning for real estate investors. And in this podcast we get into her top 5 tax planning tips.

Tax season can be a daunting time for many investors but with proper preparation and education, it doesn't have to be. On today's episode, we talk with Natalie Kolodij, a real estate tax strategist and investor, about choosing the right tax professional, structuring your real estate business from a tax perspective, and her experience flipping mobile homes.  We dive deep into the most asked tax questions and discuss how to find the best accountant for your needs and the questions to ask them, items to keep an eye out for on your next tax return, common tax recording mistakes, and a new deduction you definitely want to take. Natalie also shares with us her journey flipping mobile homes and how she found a buyer for a flip hours after she bought it. Natalie is the founder of Kolodij Tax and Consulting, a firm which embraces its tag line of ‘Tax Strategies to escape the 9-5”. A passion for real estate, tax strategy, automation, life freedom, and FIRE led Natalie to launch her firm in 2017. She has gone on to help investors across the country with unique tax strategy and planning to help work towards their REI goals. Natalie started off in real estate the worst way possible- via a guru course. Luckily, only a weekend event was attended, which opened her eyes to the world of real estate investing. After a failed agreement as a wholesaler, she switched gears and began investing in mobile homes in the greater Seattle area.  On today's episode, we discuss a ton with Natalie, including: Common tax mistakes to avoid Ways to utilize rental losses strategically Questions to ask a potential tax accountant How to find and flip mobile homes Structuring LLCs from a tax perspective   Books/Resources eFile1099.com Go for No! by Andrea Waltz FREE GIFT – Free Tax return review and tax consultation   Contact Information Kolodij Tax and Consulting Facebook – Kolodij Tax – Real Estate Tax Strategist   Looking for Funding? Ladies, you need to check out Fund That Flip! We are excited to tell you about Fund That Flip, a company we are very proud to call our sponsor. Fund That Flip is the leading provider of fast, convenient, affordable capital for experienced real estate investors who buy and rehabilitate residential properties. To date, they have helped hundreds of real estate investors grow their businesses by funding thousands of deals. You deal directly with them, getting your deal funded in as few as 10 days.  85% of their customers come back to do more business with them because of their dedication to exceptional service. It's why they were named No. 42 of Inc.'s fastest-growing companies in America.  What do they fund? Fix-and-flip New construction Buy and Hold Properties Cash-out refinance projects from 1-4 units Real Estate InvestHERs, Get $500 towards your next closing! Check them out by visiting – www.fundthatflip.com/investher    InvestHER Community Our mission is to support and inspire women real estate investors around the globe to live a financially free and balanced life. We are dedicated to creating empowering online and in person communities where women have a non-intimidating environment to ask questions and receive the support they need. Our vision is to see all woman investors achieve her financial freedom goals on her own terms. How To Join the InvestHER Movement   1) The Real Estate InvestHER Podcast - The weekly show details the journey of some of the most amazing women real estate investors around the world, who open up their lives and share practical and strategic tools for growing a rental portfolio, flipping houses and the mindset that allows them to run a successful investing business while taking care of their families and most importantly taking care of themselves.  Subscribe via Itunes Subscribe via Android Subscribe via Stitcher 2)  InvestHER Community on Facebook  We have 2k+ members in our Facebook InvestHER Community (and growing!) This is a safe place for women to ask real estate investing questions and gain the support they need to achieve their goals!  3) InvestHER Meetups Around the Globe We have over 4k+ meetup members attending close to 25 InvestHER Meetups across the country and Canada. Meetups are being held monthly by experienced InvestHER Leaders! Learn more about our InvestHER leaders, meetup locations, and how to become an InvestHER Leader HERE! Follow us on: Facebook: @therealestateinvesther Instagram: @therealestateinvesther Learn more about your ad choices. Visit megaphone.fm/adchoices

Tax season can be a daunting time for many investors but with proper preparation and education, it doesn't have to be. On today's episode, we talk with Natalie Kolodij, a real estate tax strategist and investor, about choosing the right tax professional, structuring your real estate business from a tax perspective, and her experience flipping mobile homes.  We dive deep into the most asked tax questions and discuss how to find the best accountant for your needs and the questions to ask them, items to keep an eye out for on your next tax return, common tax recording mistakes, and a new deduction you definitely want to take. Natalie also shares with us her journey flipping mobile homes and how she found a buyer for a flip hours after she bought it. Natalie is the founder of Kolodij Tax and Consulting, a firm which embraces its tag line of ‘Tax Strategies to escape the 9-5”. A passion for real estate, tax strategy, automation, life freedom, and FIRE led Natalie to launch her firm in 2017. She has gone on to help investors across the country with unique tax strategy and planning to help work towards their REI goals. Natalie started off in real estate the worst way possible- via a guru course. Luckily, only a weekend event was attended, which opened her eyes to the world of real estate investing. After a failed agreement as a wholesaler, she switched gears and began investing in mobile homes in the greater Seattle area.  On today's episode, we discuss a ton with Natalie, including: Common tax mistakes to avoid Ways to utilize rental losses strategically Questions to ask a potential tax accountant How to find and flip mobile homes Structuring LLCs from a tax perspective   Books/Resources eFile1099.com Go for No! by Andrea Waltz FREE GIFT – Free Tax return review and tax consultation   Contact Information Kolodij Tax and Consulting Facebook – Kolodij Tax – Real Estate Tax Strategist   Looking for Funding? Ladies, you need to check out Fund That Flip! We are excited to tell you about Fund That Flip, a company we are very proud to call our sponsor. Fund That Flip is the leading provider of fast, convenient, affordable capital for experienced real estate investors who buy and rehabilitate residential properties. To date, they have helped hundreds of real estate investors grow their businesses by funding thousands of deals. You deal directly with them, getting your deal funded in as few as 10 days.  85% of their customers come back to do more business with them because of their dedication to exceptional service. It's why they were named No. 42 of Inc.'s fastest-growing companies in America.  What do they fund? Fix-and-flip New construction Buy and Hold Properties Cash-out refinance projects from 1-4 units Real Estate InvestHERs, Get $500 towards your next closing! Check them out by visiting – www.fundthatflip.com/investher    InvestHER Community Our mission is to support and inspire women real estate investors around the globe to live a financially free and balanced life. We are dedicated to creating empowering online and in person communities where women have a non-intimidating environment to ask questions and receive the support they need. Our vision is to see all woman investors achieve her financial freedom goals on her own terms. How To Join the InvestHER Movement   1)  The Real Estate InvestHER Podcast - The weekly show details the journey of some of the most amazing women real estate investors around the world, who open up their lives and share practical and strategic tools for growing a rental portfolio, flipping houses and the mindset that allows them to run a successful investing business while taking care of their families and most importantly taking care of themselves.    Subscribe via Itunes  Subscribe via Android  Subscribe via Stitcher 2)  InvestHER Community on Facebook  We have 2k+ members in our Facebook InvestHER Community (and growing!) This is a safe place for women to ask real estate investing questions and gain the support they need to achieve their goals!   3) InvestHER Meetups Around the Globe We have over 4k+ meetup members attending close to 25 InvestHER Meetups across the country and Canada.  Meetups are being held monthly by experienced InvestHER Leaders! Learn more about our InvestHER leaders, meetup locations, and how to become an InvestHER Leader HERE! Follow us on: Facebook: @therealestateinvesther Instagram: @therealestateinvesther

We wanted to make sure that you're 100% prepared for tax season by republishing this podcast with Natalie Kolodij. Yes, that is a dog snoring in the background ;-).

There's a chance that you might be able to save money immediately after listening to this podcast with Natalie Kolodij. Do you like to save money? Natalie talks about tax and accounting strategies that you NEED to know!