Know Your Numbers

Real estate professional status allows investors to offset passive losses with active income, but it requires meticulous record-keeping and a minimum of 750 hours in real estate-related activities. Chris shares real-life examples and insights on how to ensure you meet the IRS requirements and avoid potential pitfalls. In this episode of the Know Your Numbers REI podcast, host Chris McCormack discu...

In this episode of the Know Your Numbers REI podcast, host Chris McCormack dives into the crucial topic of debt, specifically focusing on the tax implications of refinancing in real estate investing. He emphasizes the importance of proper record-keeping and categorization to avoid unknowingly paying taxes on debt that should be non-taxable. Chris shares real-life examples of investors who faced ta...

In this episode of the Know Your Numbers REI podcast, host Chris McCormack discusses the frustration that many individuals feel around taxes in the U.S. He highlights the impending increase in tax rates expected by the end of 2025 due to changes stemming from the Tax Cuts and Jobs Act passed in 2017. He discusses how to navigate these upcoming tax changes and reduce the amount they hand over to th...

Oil and gas investing presents a compelling opportunity for investors seeking to diversify their portfolios and potentially achieve high returns. As highlighted in the podcast episode, one of the primary advantages of oil and gas investing is its potential for significant returns. By investing in these essential commodities, investors can capitalize on the ongoing demand, making oil and gas invest...

Real estate professional status is a valuable tax strategy that enables individuals to offset losses from rental real estate against their active income. By qualifying as a real estate professional, individuals can utilize these losses to reduce their taxable income, particularly beneficial for those with high W-2 or business income. In this episode of the Know Your Numbers REI podcast, host Chris...

In this episode of the Know Your Numbers REI podcast, host Chris McCormack delves into tax strategies, news, and insights for real estate investors and business owners. The focus is on helping those frustrated with the amount of taxes they pay to gain confidence and understanding in tax knowledge. Chris addresses the different tax implications for various industries within real estate investing, s...

Finding a specialized tax advisor experienced in your industry is crucial for proper tax planning and compliance. Just as you would seek a surgeon specialized in a specific medical procedure, finding a tax advisor with expertise in your industry ensures tailored advice and strategies aligned with the complexities of your business. In this episode of the Know Your Numbers REI podcast, host Chris Mc...

In this episode of the Know Your Numbers REI podcast, host Chris McCormack, a CPA and Certified Tax Planner, delves into the crucial topic of documentation in real estate accounting and tax planning. He emphasizes the importance of proper documentation in protecting oneself against IRS audits and maximizing tax savings. Chris emphasizes the significance of documenting business activities for real...

In this episode of the Know Your Numbers REI podcast, host Chris McCormack wraps up the series on Six Keys to Increasing Your Real Estate Revenue by discussing the importance of autonomous and accurate decision-making. By teaming up with the right professionals, you can free up time, reduce tax bills, and make confident decisions to grow your real estate portfolio. Chris shares real-life examples...

Investing in professional advice and teaming up with a qualified professional is crucial for real estate investors to reduce audit risk and avoid costly mistakes. The IRS is diligent in auditing individuals in the real estate industry due to the perceived tax benefits associated with it. Without the right knowledge and expertise, investors may unknowingly engage in practices that increase their au...

Investing in a tax plan is crucial for real estate investors to save on taxes and plan for the future. It is important to understand the significance of tax planning as a way to mitigate taxes and keep more money in the investor's account. Many real estate investors often rely on their CPAs to handle their taxes without a proactive tax strategy in place. This reactive approach can lead to payi...

Managing your real estate business effectively requires measuring and monitoring your performance through up-to-date bookkeeping and tracking the numbers. In a podcast episode, Chris McCormack emphasizes the importance of performance monitoring in real estate investing, highlighting the key concept that "you can't manage what you don't measure." This principle applies not only to...

Proper internal controls and regular processes are essential components for maintaining accurate financial records and implementing an effective tax strategy. Having internal controls in a real estate business establishes checks and balances, preventing errors, fraud, and mismanagement of funds. By following structured processes and procedures, real estate investors can manage their finances effec...

Clean accounting and bookkeeping are essential for the success of real estate investors, as they help eliminate chaos, errors, and unnecessary costs. Maintaining accurate financial records is the cornerstone of a successful real estate portfolio. Just as a secure foundation is crucial in building a house to prevent future issues, having organized accounting records is key to avoiding costly mistak...

In this episode of the Know Your Numbers REI podcast, host Chris McCormack discusses his six keys to real estate tax savings. He highlights potential changes in tax laws that could benefit investors and emphasizes the need to plan ahead for the rest of the year. With market uncertainties and rising costs, McCormack focuses on ways to increase cash flow in real estate investments. The episode delve...

In this episode of the Know Your Numbers REI podcast, host Chris McCormack interviews David Bahnsen, founder of the Bahnsen Group and author of "Full-Time: Work and the Meaning of Life." David discusses the importance of work and how it is ordained by God, emphasizing the significance of producing goods and services to meet the needs of humanity. He explores the idea of co-creating with...

In this episode of the Know Your Numbers REI podcast, host Chris McCormack interviews Aaron Letzeiser, the co-founder and COO of OBIE, a cutting-edge insurance and risk management technology platform for real estate investors in the United States. Aaron shares his journey from successful entrepreneur to real estate investor and venture partner. Discover how Aaron's frustration with lack of con...

In this episode of the Know Your Numbers REI podcast, host Chris McCormack discusses key considerations as we approach the end of quarter one of tax season 2024. He emphasizes the importance of proactive planning to reduce tax bills, minimize stress, and save more money. Chris highlights missed opportunities he often sees and stresses the significance of building strong relationships with your CPA...

Building trust through human interaction and service is essential in financial empowerment. In a podcast episode featuring Parker Purcell, the significance of human connection and service in the financial industry was emphasized. Parker stressed the importance of winning hearts before minds when it comes to leadership and relationship-building. He noted that people are not robots; they are complex...

In this insightful episode of the Know Your Numbers REI podcast, host Chris McCormack covers the five common bookkeeping pitfalls to avoid, including the consequences of not keeping up with bookkeeping, failing to utilize software, procrastination, the importance of delegating, and the significance of properly categorizing transactions in the real estate industry. Tune in to learn how neglecting b...

In this episode of the Know Your Numbers REI podcast, host Chris McCormack discusses the topic of syndications in real estate investing. Syndications are group-funded investment projects that target larger commercial properties. Chris addresses common questions about syndications and explains how they differ from smaller residential properties like duplexes or quadplexes. Learn how syndications di...

In this episode of the Know Your Numbers REI podcast, host Chris McCormack delves into the controversial marketing techniques used by TurboTax. He shares insights on how these strategies impact customers and the financial world. Chris highlights the limitations of relying solely on tax software, such as TurboTax, which may guarantee an accurate tax return but overlooks proactive tax planning. He e...

In this episode of the Know Your Numbers REI podcast, host Chris McCormack, a CPA and founder of Better Books Accounting and Tax Planning, discusses the importance of understanding tax buckets for real estate investors and business owners. He emphasizes the value of aligning with the right tax professional to navigate the tax code effectively, reduce overpayments, and build a strong relationship w...

Tax rates are a crucial factor to consider when planning for retirement. In this episode of the Know Your Numbers REI podcast, David McKnight, author of the bestselling book "The Power of Zero" shares his expertise in helping thousands of Americans achieve the 0% tax bracket. Emphasizes the importance of recognizing that tax rates are likely to increase in the future due to the growing n...

In this episode of the Know Your Numbers REI podcast, host Chris McCormack discusses the power and possibilities of using retirement accounts, specifically the Roth IRA. He shares a powerful story that highlights the benefits and considerations of utilizing retirement accounts for financial planning. Chris emphasizes that everyone's financial goals and circumstances are unique, and encourages...