Summary: We’re counting down the best ways to save money on taxes in 2023, ending with our #1 favorite method…apartment syndication! Let’s make 2023 a year of major tax savings so you can continue building lasting wealth.
We see you out there…working hard, making great income, and saving for your future. There’s nothing wrong with aaaany of that, and we respect the heck out of your efforts.
Here’s the thing though.
No matter how hard you work, or how much money you make, you still have to hand a LOT of it over to the IRS. Aaaand the more you make, the higher that payment becomes – which puts a strain on that beautiful future you’re envisioning. 😅
So, listen. It might be time to do things a bit differently if you want a different outcome – AKA saving your hard-earned money!
We’re not saying you have to change careers or move out of state. It’s actually much simpler than all of that.
Today we’re sharing 5 simple ways to start saving in taxes RIGHT NOW. 🙌
We’ll be counting down to our absolute favorite method for tax benefits, and why it’s soooo effective in saving AND making you money. Then, you’ll get a little insight into why now really is the best time to focus on cutting down your tax bill.
Ready to dive in??
Here’s what we’re covering:
- #5 – We’ll start simple…file taxes on time
- #4 – Put money into a 529 college savings account
- #3 – The countdown continues with tax deductions
- #2 – Alllmost there! Let’s talk mutual funds and stock options
- #1 – Our TOP fave tax savings method…apartment syndication
- How apartment syndication saves you tons in taxes
- What’s the best next step for you?
#5 – We’ll start simple…file taxes on time
Aaaaand let the countdown begin!
This first tip might sound totally obvious to our fellow, never-late people out there. Honestly, if we go anywhere, we’d rather show up 3 weeks early and sit there and WAIT, than be late. 🤣🤣
If you’re like that, you probably pay your taxes super early to get them checked off your list for the year.
Buttt, you’d really be surprised how often people wait until the very last second, and end up having to pay some hefty fines.
No one, and we mean NO ONE, wants to be paying fines on top of their taxes. So, let this be a simple reminder….file your taxes before the deadline. Always. Since state deadlines may vary slightly, check your state’s department of revenue, juuuust to be sure.
It helps to start your preparation process early, so you have everything you need when it comes time to file your taxes.
#4 – Put money into a 529 college savings account
Next on our tax saving tip list, is a cool little thing called a 529 college savings account. These are great to put money into, because contributions are made from after-tax dollars.
Any earnings from the account are not subject to income tax, as long as they stay in the account. Then, if money is withdrawn to go towards education, you don’t have to pay federal taxes on it.
How cool is that?
529 account withdrawals may even earn you some state tax deductions, which is another fun perk.
The catch is, funds do need to be applied towards some sort of education. But that can mean college tuition, K-12 expenses, and sometimes even student loan repayments. So, you do have options for where to spend this tax-free money.
These accounts are easy to open, and accessible to any US citizens with a social security number. If you have any type of education expenses that will come up in the future, opening a 529 account is a great, simple way to save some money in taxes. 👌
#3 – The countdown continues with tax deductions
Our next tax tip is all about deductions. You may already be deducting some things from your taxes, but are you including ALL the credits and deductions you’re eligible for? Many people don’t know what they can deduct, which leads to playing it super safe and missing out on savings.
But when it comes to taxes, we say every little bit matters. Talk to your tax professional and ask them to go over every possible deduction available to you.
Here’s a few examples of things that can be tax deductible ⏬
- Home mortgage
- Electric powered vehicles
- Solar panels, or any energy efficiency improvements to your home
- Dependants under 18 years old
- Student loan interest
- Medical expenses
- Charitable contributions
- Self-employment expenses
There really are tons of possible credits to take advantage of. Not all of these apply to every person, of course, but discuss with your tax pro if any of these apply to you.
#2 – Alllmost there! Let’s talk mutual funds and stock options
This option is great for anyone with investments in mutual funds, stocks, or bonds. Review the performance of your investments with your tax pro so they can tell you if any tax perks apply.
You might be able to offset capital gains through tax-loss harvesting.
This happens when you sell investments that are down and replace them with similar investments.
Then you can offset your gains with your losses.
So, what we’re saying is that tax-loss harvesting can help you turn even ill-performing investments into wins. 😏
And now, the moment we’ve all been waiting for. Ready for our #1 tax tip? We’d ask for a drumroll, but we’re just too excited to share!
#1 – Our TOP fave tax savings method…apartment syndication
Investing in apartment syndication is the best tax advice we could possibly share. It’s our chosen method of investing, and has totally transformed our lives for the better.
If you like the perks of freeing up time, making passive income while you sleep, and getting to save on taxes, keep reading…you’re in the riiiight place.
As an asset class, apartment buildings are high demand, high return, and fairly low risk.
So, as far as real estate investing goes, apartments really are an awesome choice.
The super cool thing about apartment syndication, (one of many cool things) is that even as a passive investor, you still reap the same tax benefits as the syndicators. That means, you don’t have to do any of the behind-the-scenes work of managing the properties, and you STILL get rewarded with passive income and tax savings. 🤩
It doesn’t get much better than that.
Now, let’s look a little deeper at these tax benefits we’re raving about.
How apartment syndication really saves you tons in taxes 💰
Listen. The government 💜 looooves real estate investors, and shows it by offering lots of great tax benefits.
Seriously. There are tax laws out there that are written JUST for investors like us.
People who invest in real estate are investing in assets that make the world better, in the eyes of the government. Housing is, after all, a basic human need. So, real estate investors get rewarded for helping make housing available.
Now, apartment syndication tax benefits are even better than other real estate investments, because of something called bonus depreciation.
The way depreciation works is that it lets you pay less taxes now – allowing you time to invest your losses into other investments. That means you save money immediately, and make MORE money in the long-run.
Isn’t that nice?
As a passive investor – also called limited partner – you receive a K-1 document each year.
This shows your income and losses for the year. Usually, the first year will show a negative number, which is actually a very good thing. By offsetting your losses, you significantly reduce the taxes you owe – sometimes even canceling them out completely.
Amazing, right? But here’s the thing. You really do want to start taking advantage of bonus depreciation ASAP.
Starting in 2023, bonus depreciation is set at 80%. In 2024, it is scheduled to lower to 60%. Bonus depreciation will continue to phase out, year by year, after that. But that’s why we want you to get in on the apartment syndication action NOW. There’s truly no better time to save as much money in taxes as possible. 🙌
What’s the best next step for you?
We’re not trying to cause you stress with this urgency. It’s actually the opposite – we want to help decrease your tax stress as soon as possible. So, here’s the best way to get started if you want to save and earn money by investing in apartment syndication.
👉 Join the Kitti Freedom Club to LEGALLY save tons in taxes in 2023. ✨
This is our community of awesome investors – from newbie to experienced – who are all creating passive income, saving for the future, and getting in on the best tax benefits around.
We’ll teach you eeeverything there is to know about apartment syndication. Plus, members of the Kitti Freedom Club also get insider access to some AMAZING investment deals. It’s really the place to be if you’re looking to grow your wealth while investing in the most tax-friendly asset class.
GET ME ON THE KITTI FREEDOM CLUB
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