Latest / Go Big with Gib Podcast / Ep 91. What the IRS Calls a Loss Might Be Your Shortcut to Financial Freedom

Transcript

Ep 91. What the IRS Calls a Loss Might Be Your Shortcut to Financial Freedom · Go Big with Gib Podcast

• 0:00
  SPEAKER_00: Welcome to the Go Big With Gibb podcast, where we talk to professionals, business owners, and entrepreneurs about their big wins.
• 0:09
  SPEAKER_00: Hey everyone, welcome back to this episode of Go Big With Gibb.
• 0:13
  SPEAKER_00: I'm your host, Gib Irons.
• 0:14
  SPEAKER_00: Today we're going to talk about one of the most powerful and misunderstood tools in real estate investing, passive losses.
• 0:21
  SPEAKER_00: Now, the IRS calls it a loss, but smart investors know it's actually a strategy.
• 0:26
  SPEAKER_00: Here's how it works.
• 0:28
  SPEAKER_00: When you invest in a property, the IRS allows you to take depreciation.
• 0:32
  SPEAKER_00: That's a paper loss.
• 0:33
  SPEAKER_00: It makes the property look like it's losing money, but in reality, that property is oftentimes cash flowing and putting money directly in your pocket.
• 0:43
  SPEAKER_00: Let's run a quick example.
• 0:45
  SPEAKER_00: Imagine you invest in a deal that pays you$20,000 in cash flow this year.
• 0:50
  SPEAKER_00: At the same time, depreciation creates a$25,000 paper loss.
• 0:55
  SPEAKER_00: On your tax return, it looks like you made zero, but in real life, you just collected$20,000 in cash flow.
• 1:02
  SPEAKER_00: That's the magic of passive losses.
• 1:04
  SPEAKER_00: They reduce your taxes and they speed up your path to financial freedom.
• 1:09
  SPEAKER_00: The wealthy have known this strategy for decades.
• 1:12
  SPEAKER_00: They understand it's not just about how much money you make, it's about how much money you keep.
• 1:18
  SPEAKER_00: And now more high-earning professionals, doctors, attorneys, business owners are learning how to use the tax code to their advantage.
• 1:26
  SPEAKER_00: The rules are the same for everyone.
• 1:28
  SPEAKER_00: The difference is whether you decide to play the game.
• 1:31
  SPEAKER_00: So if you're looking to grow wealth, protect your income, and build a life of freedom, pay attention to passive losses.
• 1:38
  SPEAKER_00: They may be one of the most important tools in your financial toolkit.
• 1:42
  SPEAKER_00: Thanks for tuning in to this episode of Go Big with Gibb.
• 1:46
  SPEAKER_00: I'm Gib Irons reminding you that wealth isn't just about what you earn, it's about what you keep.
• 1:52
  SPEAKER_00: And as always, this is not tax or legal advice.
• 1:55
  SPEAKER_00: Consult a qualified CPA or advisor before making any tax-related decisions.
• 2:07
  SPEAKER_00: If you haven't already, go follow us on social media at GibIons.
• 2:11
  SPEAKER_00: We'll see you next time.