As an aspiring CPA, I thought it would be good to share one of the great benefits of real estate. If you own rental properties, you may be able to deduct passive losses against your earned W2 income—up to $25,000! Here's how: - If you actively participate and your adjusted gross income (AGI) is below $100,000, you can deduct passive losses from rental activities. - The deduction phases out between $100k and $150k (50 cents for each dollar over $100k), and you're required to own more than 10% of the property. If you want to take it further, you can use 26 CFR §1.469-9(g) to elect as a real estate professional. This election allows your real estate activities to not be treated as passive, potentially opening up even more deductions. To qualify: 1. More than 50% of your personal services across all trades/businesses must be in real estate. 2. You must perform 750+ hours in real estate activities where you materially participate. This strategy could save you significant money on taxes as you build your portfolio! [NOTE] You should consult a professional regarding this subject matter.

When building a rental portfolio, you can either go solo or use OPM (Other People’s Money) through equity deals and partnerships to scale faster. While OPM helps you grow quickly, it also adds complexity and responsibility—especially when managing someone else’s hard-earned money. From my experience (with a Master’s in Taxation), I know how tricky partnerships can get with taxes, profit splits, and overall management. I recently started a partnership with a close friend where we both put in equal capital and act as general partners. While I haven’t used OPM yet and prefer not to, I’m glad I started this partnership because it’s forcing me to learn how to structure one and handle the accounting process correctly. It’s been a valuable learning experience. For those of you who have grown your portfolio using OPM or partnerships, what challenges and benefits have you encountered? Do you prefer the solo route, or has partnering been key to your success?