SESSION OVERVIEW:

Many investors have recently increased their net worth by investing in real property and renting it out to others. This is an especially important source of income and a way to manage risk especially during a prolonged bear market. Plus, there are numerous tax benefits of owning and improving real estate that is rented to others. Dig deeper into the tax consequences of owning revenue properties and how advisors can help investors leverage these assets into a significant cornerstone of a sound, holistic wealth management plan.

APPROACH:

Many clients decide to supplement income by owning a rental property or renting out part of a principal residence. This may be a good wealth accumulation strategy but there are tax consequences your clients need to be aware of to minimize tax impacts. In addition, in a post-pandemic world, there may be additional concerns about renting to others, especially in the short-term rental market.

WHAT YOU WILL LEARN:

• Tax implications of rental income on an investment property
• Various expenses that can reduce the tax impact of rental income
• Tax issues around renting out part of a principal residence

LEARNING ACTIVITIES: To test the learning process, the student will answer multiple-choice questions and contemplate the role of the advisor.