H. Edward Gallatin: Proactive Tax Strategies for Real Estate Success

Epic Spotlight Podcast

H. Edward Gallatin, MBA, CPA, CTRS, a lifelong resident of the Wabash Valley is a distinguished professional with extensive academic background and a profound commitment to his community. With a foundation from Indiana State University including a Bachelor of Science in Political Science (1980), Bachelor of Science in Accounting (1996), and a Master of Business Administration (1998), Mr. Gallatin imparts wisdom as an Accounting and Finance educator at Indiana State University and is a sought-after guest speaker on Personal Finance and Tax Strategies.

Operating under the banner of H Edward Gallatin CPA, his firm is situated at 18 S. 5th Street, Terre Haute, Indiana, serving the diverse needs of individuals and small businesses within the Wabash Valley. With a distinguished certification as a Certified Tax Resolution Specialist (CTRS), Mr. Gallatin offers personalized, confidential assistance in addressing IRS-related issues, standing in stark contrast to the impersonal promises of national firms.

In this episode Dante and Edward discuss:

• Tax-saving strategies like cost segregation and 1031 exchanges
• The value of proactive CPA partnerships and regular meetings
• Tax benefits of cost segregation and stepped-up basis at inheritance
• Real estate professional status and rental loss deductions
• Choosing advisors who offer proactive advice, not just compliance work

Key Takeaways:

• Real estate investors can leverage tax-saving strategies like cost segregation and 1031 exchanges, which offer significant benefits to reduce taxable income.
• Regular, proactive CPA meetings are essential, helping real estate investors navigate tax laws and make informed financial decisions throughout the year.
• Qualifying as a "real estate professional" provides investors the advantage of deducting rental losses against income, bypassing AGI limitations.
• Advisors should be chosen not just for their compliance skills but for their ability to offer strategic, forward-thinking advice tailored to real estate investments.
• Ignoring tax filings can lead to severe consequences, including forfeited refunds and potential legal action; professional assistance is crucial in avoiding these risks.

“I think the biggest thing is cost segregation. Even those who are aware of it often think, ‘Well, I don’t own a big office complex or a mall.’ However, you can use cost segregation on residential rentals as well, which is often overlooked and can result in significant tax savings. For those playing the long game in real estate, the 1031 exchange is probably the best strategy for generating what I call generational wealth. It’s perfect for that.”

- H. Edward Gallatin

Connect with H. Edward Gallatin:

Website: https://www.heg-taxrelief.com/

LinkedIn: https://www.linkedin.com/in/h-edward-gallatin-mba-cpa-ctrs-312a1354/

Phone: [phone]

Email: [e-mail]

Connect with Dante Royster:

Website: https://www.danteroyster.com/

Epic Mortgage Website: Epic Mortgage, Inc. NMLS 1885086

Facebook: EpicMortgage1885086

Epic Mortgage Instagram: https://www.instagram.com/epicmortgage/

“The Ultimate Mortgage Guide” book: https://www.amazon.com/dp/B0CKTRWLRP

LinkedIn: Dante Royster | LinkedIn

Twitter: https://twitter.com/DanteRoyster

YouTube: Epic Spotlight

Email: [e-mail]

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Show notes by Podcastologist: Angelo Paul Tagama

Audio production by Turnkey Podcast Productions. You're the expert. Your podcast will prove it.