Lowering AGI with PALs, Home Exemption, REP Status, and More
Strategies for Lowering AGI
This video covers various tax strategies and how they fit into a holistic approach to reducing your adjusted gross income (AGI).
I’ll also discuss what I call “bracketology” and sharp shooting, where we explore how to position yourself within tax brackets and plan for future capital gains or lower-income years.
Remember, no one else has the same insight into your income, investment exits, and future investment plans. Relying solely on your CPA for tax planning isn’t practical, which is why I always encourage our investors to take charge of their own tax planning. Your CPA’s role is to file your taxes, but it’s up to you to strategically plan for your financial future.
Sorry might not have been the answer you are looking for but this is where a community of ours is so critical to being on the forefront of these best practices and creative ideas. Apply here!
Lesson summary
This video ties several strategies together around one number, your adjusted gross income (AGI). I start with how capital gains and depreciation recapture flow into AGI. Then I cover the capital gains exclusion when you sell your primary home, how passive activity losses (PALs) from rentals and syndications can offset passive gains, real estate professional status, how suspended passive losses carry forward and get released, and cost segregation on rental properties. I also talk about planning across tax brackets, such as timing gains for lower-income years. Your own numbers decide which of these apply.
This is educational content, not tax, legal, or investment advice. We are not attorneys, CPAs, or financial planners. Please let us know if you need a referral to a CPA, lawyer, or other vendor here.
This content is provided for informational and educational purposes only and does not constitute an offer to sell or a solicitation to buy any security or investment product. All investors must review and sign the official offering documents, including the Private Placement Memorandum (PPM), which governs and supersedes any prior communication. Tax and legal outcomes vary by individual circumstance. We do not provide tax, legal, or accounting advice—investors should consult qualified professionals before making investment decisions. Click Here to see full disclaimer.