Most investors misconfigure passive income tax structures and end up unwinding costly mistakes. Passive losses can't offset W-2 wages or active business income, so you need proactive planning upfront rather than short-term fixes to save long-term.
People are talking about tax this and tax that, and it's like, man, there is so much garbage out there. You set it up this way. That makes no sense. Not only do I have to unteach you and then reteach you, now we've got to undo all these things that you set up and then reset them up correctly. You actually should be doing this. And now we're helping them unwind things and then reset up things. Doing things proactively is going to be way more beneficial long term. It seems like you're saving money in the short term, but at the end of the day, it's just kind of throwing money away.
What the options are, because I think a lot of people that especially don't come from a real estate background but have started investing, you know, passively don't even understand passive or active, how that impacts your tax situation.
The point is that you can kind of separate your investments into, hey, everything over here that's passive should theoretically maybe never get taxed. It's not going to offset your W-2 and business profits. If I continue this ball rolling, the time that it could stop is if you basically stop investing and you stop generating new losses.
