It is April, which means that in normal years (what does that mean now anyways?) your taxes are due! In 2020 and 2021, the normal due dates were administratively extended by the IRS allowing for more time to file taxes. What has always been odd to me is the fact that April is the time when everyone thinks about “tax planning”. The problem is that tax planning generally doesn’t happen in April. This month is typically dedicated to tax compliance, which is just a fancy way of saying that you are reporting all the tax planning (or lack thereof) you did in the past year. Too many times we think of tax planning as a reactive measure, when in actuality it is a proactive measure. So, even though tax planning really doesn’t happen in April it still can if you are selling stock, real estate, bitcoin, or really any type of asset.

As a real estate investor, you are responsible for the product, you are responsible for repairing the houses, finding tenants, and addressing ongoing issues. However, at the end of the day, real estate is a great business, especially if you start young and slowly build.