Tax-Savvy Savings: The Tax Bucket Approach to Put Money Back in Your Pockets with Susan Geist

CREI Partners

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In today’s episode of The Untold Stories of Real Estate Investing, host Wayne Courreges III speaks with Susan Geist who shares her expertise and tips for investors. She details how to put money back into investor’s pockets using the tax bucket approach. As someone who has achieved incredible success in building a portfolio generating five figures in passive income, Susan has invaluable insights into using strategic investment deductions to optimize your taxes and maximize your wealth.

A few years ago, Susan was taken aback by a huge federal tax bill. In response, she developed a ‘tax bucket’ strategy to map out her future tax planning. This approach enabled her to effortlessly visualize her income and tax obligations, ultimately revealing remarkable opportunities for substantial tax savings. Today, she consistently saves over $100,000 annually on her taxes. In this presentation, we will delve into Susan’s tax-saving secrets. We’ll learn how to categorize income into the IRS’s three distinct buckets and discover deductions tailor-made for each bucket. Prepare to unlock the potential for substantial tax savings that put money back into your own pockets!

Topics on Today’s Episode:

Overview of the importance of tax planning and optimization in real estate investing.
Explanation of the tax bucket formula and its divisions (active, portfolio, passive).
Discussion of a client example named Meredith, who has income from a W-2 job and stocks.
Discussion of tax-advantaged accounts and real estate as tax-saving strategies.
Explanation of how short-term rentals can be classified as active businesses for tax write-offs.
Case study of a client generating a $120,000 loss in the first year through depreciation and expenses.
Importance of tax-savvy savings and the long-term impact of saving on taxes.
Example of using a backdoor Roth IRA to add to the active bucket and reduce taxes.
Benefit of being in the 0% tax rate for dividends and long-term capital gains.
Comparison of previous and current tax burdens for a client, resulting in significant savings.
Mention of other income benefits related to the Affordable Care Act, FAFSA, and Medicare.
Discussion of the potential future wealth growth through compounding.