The ‘Marital Loophole’ Strategy Real Estate Investors Can Use to Reduce Taxes
Owning rental properties offers tax benefits.
That’s “no surprise,” CPA Amanda Han told Business Insider. “I think what generally happens is people just don’t know how to utilize these benefits.”
Han and her husband, Matthew MacFarland, run Keystone CPA, a firm that specializes in tax-saving strategies for real estate investors. The CPA couple also invests in property outside of their day jobs.
They flagged one lesser-known tax strategy that is particularly advantageous for property investors. It allows qualifying individuals to shelter their W-2 income by using an IRS designation known as “real estate professional status,” or REPS.
Typically, rental real estate losses are considered passive and can only offset…
