I earn a respectable part-time W2 salary and do not wish to increase my hours at my main job. I am interested in exploring real estate investments that could provide tax advantages. One idea is engaging in short-term rental opportunities or setting up a related enterprise that qualifies for deductible expenses. I have ample time and enthusiasm to dive into such endeavors and would appreciate guidance on strategies that effectively leverage tax deductions, even if they do not completely offset my W2 tax liabilities.
My experience with real estate tax strategies suggests that investing in multi-family rental properties could be a solid option. Operating a long-term rental business not only allows for depreciation deductions but also enables active expense management. Using a careful structuring approach, such as holding the properties in an LLC and working with professionals for cost segregation studies, has proven beneficial for reducing taxable income even when working on a W2 salary. While this approach may require a hands-on management style, it offers a blend of consistent cash flow and meaningful tax benefits when planned correctly.
Hey, have you considered blending house-hacking with strategic depreciation and cost segregations? It might align well with a W2 income lifestyle. Also, working with a tax adviser could fine-tune your approach. What do you think fits your style best?