Avoid Costly Tax Mistakes in Commercial Real Estate – Tips from Deborah Myers

In this episode, Deborah Myers breaks down the five biggest tax mistakes investors make with commercial real estate and shares strategies to avoid costly errors. Whether you're new to real estate investing or looking to optimize your tax approach, these insights can help you save tens of thousands of dollars and maximize your returns.

Key Topics:

• The importance of understanding passive activity loss rules
• How depreciation recapture impacts your profits
• The critical timelines of 1031 exchanges and how to stay compliant
• The value of coordinating with your CPA before making investments
• Red flags when evaluating operator tax strategies
• Real-life stories: common pitfalls and success stories
• Actionable steps to improve your tax planning today

Timestamps: 00:00 – Introduction: Why understanding tax strategies matters 00:28 – The risks of misapplying tax advantages in real estate 00:56 – Robert’s story: When passive losses don’t translate to immediate tax savings 1:23 – The five biggest mistakes investors make in real estate tax planning 5:15 – Mistake 1: Not understanding passive activity loss rules 5:44 – How passive losses work and when they can be used 6:42 – Exceptions for real estate professionals 7:11 – How to avoid passive loss mistakes 7:39 – Mistake 2: Overlooking depreciation recapture 8:10 – The mechanics of depreciation recapture and its tax implications 9:06 – Planning for recapture and using 1031 exchanges 9:34 – Mistake 3: Missing 1031 exchange deadlines 10:04 – The strict timelines and how to stay compliant 11:02 – A cautionary tale: when missing a deadline costs $400,000 12:00 – Strategies: work with qualified intermediaries and build in buffers 12:59 – Mistake 4: Poor coordination with your CPA 13:27 – The importance of early tax planning and structuring 14:23 – How to ask the right questions before investing 15:20 – Mistake 5: Assuming operators handle tax strategically 15:46 – Key questions to evaluate an operator’s tax planning approach 17:15 – Success story: Jennifer’s proactive approach and tax savings 18:44 – Recap of the five biggest mistakes to avoid 20:37 – Free Offer: Download the “Ultimate Tax Advantage Guide” for free 21:06 – How to start planning now and get expert guidance 22:02 – Closing remarks: Invest wisely and avoid unnecessary taxes

Resources & Links:

• Ultimate Tax Advantage Guide for Commercial Real Estate Investors (Download your free copy now!)

Connect with Deborah Myers:

• LiveWell Commercial Website
• Schedule a Call

Make this tax season your most strategic one—plan ahead, ask questions, and work with experts to keep your investments profitable.