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cover of episode How to Start Investing in Real Estate Without Getting Crushed by Taxes

How to Start Investing in Real Estate Without Getting Crushed by Taxes

2025/6/10
logo of podcast Live Off Rents Podcast

Live Off Rents Podcast

Shownotes Transcript

Are you a real estate investor looking to reduce your tax burden — or just trying to understand how depreciation recapture could affect your bottom line?

In this episode, Brian Davis (co-founder of SparkRental) sits down with Sean Lovison, a Certified Financial Planner and CPA, to unpack everything you need to know about real estate depreciation, tax liability, and smart exit strategies — including how to avoid surprise tax bills when selling rental properties.

We cover: ✅ What is depreciation recapture and how does it work? ✅ How to calculate your real tax liability when selling a property ✅ The difference between capital gains vs. depreciation recapture ✅ Real-life examples of investors getting hit with unexpected taxes ✅ How to use 1031 exchanges to defer taxes legally ✅ What is a “lazy 1031 exchange” in syndications and how it works ✅ Tax tips for passive vs. active real estate investors ✅ What happens if you don’t claim depreciation (hint: it’s bad!) ✅ The long-term tax benefits of holding until “the endgame”

🎯 Whether you’re a beginner or an experienced investor, this episode is packed with insights on real estate tax planning strategies to help you keep more of your profits.

🔗 Get Free Access to Our Private Equity Real Estate Training 👉 Take our free 40-minute class: https://sparkrental.com/hack Learn the 7 secrets we’ve learned from private equity investors – with zero sales pitch!

📞 Want to Work with Sean? Find him at https://purposebuiltfs.com Flat-rate financial planning, tax prep, and wealth management.

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