Your Tax Savings Playlist for Keeping More Money

Your Tax Savings Playlist for Keeping More Money in Your Pocket | Kitti Sisters

034: Your Tax Savings Playlist for Keeping More Money in Your Pocket (Without Feeling Overwhelmed)


What’s the one season that brings an air of inevitable stress and dreads?

👉 Hint: It’s the season of Feb, March, and April. And no…it’s not springtime. Because who doesn’t love blossoms and sunshine and joy, right? 🌷🌞

We’re actually talking about the season of TAXES.

Ugh. 😅

We know. It’s like, no one’s favorite subject. Buuuut we’re looking to change that if you can stick with us here.

The government knows how much we all dislike handing over our hard-earned money, and that’s why there are tons of ways to save on taxes. And yes, they are legal, moral and ethical. 😏

We’re not advising you to break any sort of laws here, okay? In this case, orange is definitely not the new black. 

Nottt our vibe.

Tom Wheelright, a best-selling author and CPA, said this about the tax law: 👇

Most people know that the tax law is there to raise revenue; what a lot of people don’t know though is that the rest of the tax law is fundamentally an instruction guide to reducing taxes.” This quote never gets old for us, I feel giddy just saying it.

Today we’re diving deep into tax law, and all the incentives that could be saving you tons of money!

We’ve had some reeeeaaal good Cashflow Multipliers episodes that cover all the ways we know to save.

So, we made you a cute little playlist of our very best resources for getting the most out of tax season… while paying the least.

Let’s take the stress out of tax season. (Or should we say, let’s make it less tax-ing? 😂)

Here’s the disclaimer: We’re not your CPAs, always, always consult your CPA, legal team and all your professionals.

Our hope is that you’re going to check these episodes out, and if you haven’t already, give them a listen and maybe give them a second listen if you really want it to sink in.

Before we get started, we have a question for you. 

Have you shared this podcast with a friend? 

Especially a friend who’s looking to secure their financial future, create a passive income stream and want to learn how to pay less in taxes, if yes, please share this episode. Just grab the link, text it to them, send it to them on social media, whatever you want to do, but we would greatly appreciate it.

What’s the cashflow quadrant, and why is it important? 

Let’s start with some learning, k? Because the more you know, the more you SAVE.

Episode 11 of the Cashflow Multipliers Podcast talks about the cashflow quadrant, which is how tax law classifies the 4 different ways to make a living.

The cashflow quadrant looks like this:

  • E is for Employee
  • S is for Self-Employed
  • B is for Business owners
  • I is for Investors (obvi our fave 😍)

Everyone who earns income falls into one of these categories.

“E” and “S” are considered consumers, while “B” and “I” are considered producers.

Why is that important?

Wellllll, in the eyes of the government, producers are a bit more favorable. They help with jobs, housing, agriculture, and you get the picture. So, as you can imagine, producers get more tax breaks than consumers.

Listen. We’re not bashing your jobs AT ALL.

We would never.

And if you are considered a consumer, don’t worry!

Our goal here is to point you in the direction of tax savings no matter what quadrant you fall under.

Yep. You can keep your job AND still get tax breaks. 🙌

Press play for episode 11 here Your Guide to Paying Way Less in Taxes

Should you become a real estate professional?

Now let’s discuss another way to save on taxes.

Since that’s the whole reason we’re here today, right?

Becoming a real estate professional – AKA a REP – is hiiiighly beneficial. We really do get the BEST tax benefits. And, okay sure, you can call us biased. But we’re not just bragging about what we get to do for work.

Anyone can get in on this action. You don’t even have to quit your day job (unless you want to of course 😏)!

So, check it out.

Investing income is what we call passive income, because you can make money while you sleep, eat, travel, whatever!

But when the IRS sees that you file taxes as a REP, all your passive income becomes active income. It’s possible that your REP income could even offset your other income.

Cool, right?! 🤩

Now, you’re probably wondering what the catch is. And no, you don’t need any certification, expensive training, or test to be able to claim real estate professional status.

There are 3 qualifications you must meet to get these awesome tax benefits. And here they are:

  1.   More than half of the personal services you performed in all trades during the tax year were performed in real property trades in which you materially participated.
  2. You currently own property of your own that you have lived in for longer than six months and pay a mortgage on.
  3. You performed more than 750 hours of services during the tax year in real property trades or businesses in which you materially participated. 

And, before you get discouraged because you don’t perfectly fit the qualifications, we’ve got you. There’s still a chance you can qualify even if you didn’t do exactly 750 hours of service yourself.

We’ve got ALL the info for you to decide if REPS is the right choice for you, or not.

Give episode 16 a listen and decide for yourself!  Is Being a Real Estate Professional for You?

Show your appreciation for depreciation.

Now let’s talk about a tax hack that might be a biiiit surprising. We call it the “Zero to Hero” Strategy.

Have you ever wondered how verrrry wealthy people tend to get away with paying, like, not very much in taxes?

Because, like, doesn’t that go against the general knowledge that the more you make the more you have to pay?!

No, they aren’t cheating or breaking or the law.

The truth is, they just know how to navigate tax law really, really well. They get lots of benefits and tax breaks simply because of that knowledge.

But here’s the good news…

Tax breaks are not just for the absurdly rich. You can also reap the benefits if you know what you’re doing (and this can help you also get absurdly rich someday if you want 😉).

Here’s where depreciation comes in. And yes. For tax purposes, depreciation is a really good thing – when you know how to use it.

Remember when we said the IRS really likes investors? This is a very specific spot where that favor comes in handy. As an apartment investor, you get to choose to depreciate your apartment, which leads to tax savings.

Heck yes. 🤩

Dive into episode 24 so learn about all the possibilities of depreciation. Zero to Hero Strategy.

Finally…here’s what NOT to do to save on taxes.

We’ve offered some good tips for decreasing your tax stress levels so far. But it’s also important to know what not to do.

There are plenty of myths floating around about how to save money on taxes.

We’ve heard them all. 🙄

Another one is or make babies so you can claim them as dependents! Yep, you heard it right.  We were told to form another life to bring on this planet for tax purposes! Now that’s just plain cringy. 😱😱

And definitely there are more of the NOT helpful. We’re not trying to limit the way you live your life or add stress to your plate. That’s just not us!

We want to give you useful tips that make your life better WHILE saving and making you more money.

So, let’s take a look at 7 tips that we don’t recommend…like at all.

Tune into episode 29 here. Don’t Do These 7 Things to Save on Taxes.

Taxes are a part of life. There’s simply no way around that. BUT that doesn’t mean you have to feel stuck in a stressful cycle.

Give each of these episodes a listen to see how many different ways there are to get you unstuck and create the life of freedom that you deserve.


The Kitti Freedom Club


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We're Palmy ➕ Nancy Kitti 〰️ The Kitti Sisters

A sister duo team obsessed with all things financial freedom, passive income, and apartment investing + apartment syndication, who turned a $2,000 bank account into a nine-figure empire.  Now, we're sharing with you the behind-the-scenes secrets of our wealth building strategy.

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