#152 Maximize Your Tax Benefits With Passive Real Estate Investing, ft. Dr. Peter Kim - Passive Income MD

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Episode #152

#152 Maximize Your Tax Benefits With Passive Real Estate Investing, ft. Dr. Peter Kim

In this episode, Dr. Kim talks about how passive real estate investing, such as syndications and real estate funds, can benefit you from a tax perspective as an investor. The goal of this episode is to equip you with questions to ask your CPA as you prepare your taxes so that you can take advantage of the tax benefits that are available to you as an investor.

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Eckard Enterprises and flipMD brings this episode to you.

Eckard Enterprises, LLC, is a family-owned and operated alternative investment and asset management firm, specializing in mineral rights and the U.S. energy industry. Eckard believes that owning tangible assets is one of the safest, long-term investment strategies available in today’s investment climate.

flipMD is a competitive marketplace where physicians can source and secure consulting side gigs. Jobs come from a broad range of clients across all major industries who are looking for medical experts in their field.

23.27 Min • March 27

Episode Highlights

Now, let’s look at what we discussed in this episode:

  • How you can save on taxes
  • Real Estate Property Depreciation
  • Passive Losses vs. Active Losses
  • Syndication Ladder
  • 1031 Exchange
  • Tax-Deferred Accounts
  • Real Estate Professional Status

Here’s a breakdown of how this episode unfolds.


Episode Breakdown


How you can save on taxes

Take time to partner with the right individuals to help you minimize your taxes as it is written in the state and federal laws. In this episode, Dr. Kim will focus specifically on passive real estate, such as syndications and real estate funds. There are several tax benefits available to you when you have these types of investments, depending on where you live. Here are the common tax benefits available to passive real estate investors.



Real estate property depreciates over time. The government allows you to write off those items that depreciate in your property. As a syndication investor, you own a percentage of the building. By taking advantage of cost segregation, when a study is done of the items that are depreciating and then the value of the building can be determined. Learn more about bonus and accelerated depreciation, which allows you to depreciate it all in the first year, as compared to several years. 


Passive Losses

On paper, what is created and calculated is passive losses. You can take your passive losses  to offset your day job income, which is your active income. Passive losses can offset any gains or contributions you made on the property. Passive losses can be used towards other investment gains. By lining up your losses with the gains on your property, you can create a situation where you don’t pay a lot in taxes even though you are making a profit. This is often referred to as the Syndication 1031 Exchange. If you have several syndications, you can ladder the passive losses for full effect.


Syndication Ladder

If you have several syndications going on at the same time, you can ladder the passive losses for full effect. If you know at specific syndication is going to have a massive gain in a given year, you can choose to invest in a syndication that is going to create a nice loss for you, then it will off-set your profit and taxes. You ‌are gaining tax free profits.


1031 Exchange

The 1031 Exchange allows investors to defer capital gain taxes by reinvesting the proceeds of that sale into like-kind properties in a specific time frame. If you do this right, and follow the tax qualification, it will allow you to avoid paying taxes on it at that moment. You will then pay taxes on it at the end of the investment period. But what many do in this case is that they keep it and pass it on to their children as an inheritance. They get what is called a stepped-up basis. They receive that at the current value, with the taxes wiped. It’s as if they receive a brand new investment. And that is the basis of the future sale. This is how real estate creates generational wealth. Ask your syndication sponsor if it is eligible for a 1031 exchange.


Tax-Deferred Accounts

It’s as you are investing in your 401K. Talk to your tax professional about self-directed IRAs, and 401Ks. You can invest using your retirement savings.


Real Estate Professional Status 

Take full advantage by having real estate professional status. It’s where you, or your spouse/partner, are considered a real estate professional by hitting certain criteria regarding your time involved in your real estate deals. Thus, you can remove the wall between active and passive investments.

We talk in depth about all of this and more in our course–Passive Real Estate Academy. Want to learn everything about investing in real estate with confidence? You can grab your seat right here!   

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