Episode #365
Zach's 2026 Tax Review: How to save $90K+ in taxes on your 1st rental!
Click here: https://bit.ly/3QSPEoS to learn more about this program and speak with the RTR team to answer all your questions! How the 2026 Strategy Works Learn how EVERYONE can use a cost segregation study to offset 5 or 6 figures of taxable income from your W2 (or any income source) in 2026, even if this is your very first rental! No real estate professional status needed! Here’s how it works: You buy a vacant new construction rental property from RTR, where you can receive up to $30K+ in incentives to be used as cash back, a rate buydown, or a price reduction—the choice is yours. You take about 10 minutes to set up an Airbnb short-term rental listing following RTR’s guide. RTR rents your home for 2–5 nights. You do NOT need to furnish the home. This establishes the home as a short-term rental for 2026 under the strategy discussed in the episode, potentially allowing you to use a cost segregation study to write off approximately 30% of the home value against your income in 2026. RTR estimates 30% based on its experience. Example: a $300K home could potentially generate approximately a $90K tax deduction. You can continue managing the property as a short-term rental, or turn it over to RTR’s management teams beginning January 1, 2027. The potential result: 5 to 6 figures in 2026 tax savings while acquiring a quality new-construction rental property in a growing market. And with the combination of RTR cash-back incentives plus potential tax savings, you could potentially recover a substantial portion of your original down payment—dramatically increasing your effective ROI. That’s how Rent To Retirement helps investors pursue early retirement through real estate investing. Click here: https://bit.ly/3QSPEoS to learn more about this program and speak with the RTR team to answer all your questions! ⏱️ Timestamps 0:08 – How cost segregation can potentially offset active income 0:44 – Using the strategy with your very first rental property 1:11 – Combining RTR incentives with potential tax savings 2:18 – Why the 2026 program has limited availability 3:40 – How cost segregation works 4:26 – Using the short-term rental strategy without real estate professional status 5:14 – Passive losses vs. active income 5:37 – Important tax and legal disclaimer 5:59 – Estimating depreciation with a cost segregation study 6:53 – The 30% cost segregation example 7:23 – How a $300K property could generate an estimated $90K deduction 7:47 – Example: reducing $100K of taxable income 8:08 – What happens when deductions exceed your income 8:30 – Depreciation recapture and 1031 exchanges 8:54 – The short-term rental strategy explained 9:40 – The “substantially all” work test 10:12 – Three potential material participation paths 11:17 – Why the substantially-all test matters 11:39 – The under-7-day average stay requirement discussed 12:27 – Setting the property up on Airbnb 13:53 – Why the home does NOT need to be furnished for RTR’s placement 14:32 – What happens after the initial short-term rental stay 14:52 – Transitioning to property management in 2027 16:08 – Limited inventory and available new-construction properties 17:11 – Fort Pierce, Florida property example 17:56 – $339K property and 13% incentive breakdown 18:46 – Cash-back and cash-flow example 19:28 – Combining potential tax savings with RTR incentives 20:46 – Potential triple-digit ROI explained 21:29 – The 2–5 night RTR tenant placement process 22:47 – Alabama and Florida property examples 23:58 – Final recap and why timing matters in 2026 ⚠️ Tax Disclaimer: This content is for educational purposes only and is not tax, legal, or financial advice. Tax outcomes depend on individual circumstances. Consult a qualified CPA, tax professional, or attorney regarding your specific situation. Click here: https://bit.ly/3QSPEoS to learn more about this program and speak with the RTR team to answer all your questions!
