• Ian Ippolito

How to Invest in Real Estate w/o Paying a Penny of Tax: Part 3: The Power of "Passive Pairing"

Updated: Dec 28, 2020

Dramatically cut or even wipe out your investment tax bill with "passive-pairing."

(Disclaimer: I'm not an accountant, financial advisor or attorney. Always consult your own financial and/or legal advisors before making any tax, financial or legal decisions. Code of ethics: We do not receive any money from any sponsor or platform for anything including guides, tutorials, postings, reviews, referring investors, affiliate leads or advertising. Nor do we negotiate special terms for ourselves above what we negotiate for the benefit of private club members.)

Part 1 of this article looked at traditional retirement-vehicle tax-sheltering methods (self-directed IRA, solo 401k)... and examined how they're good and how they fall short. Part 2 looked at how experienced investors like John Frederick use non-retirement money to pay zero taxes while still maintaining maximum financial flexibility ("defer, defer and die" via serial 1031 exchanges).

However, these only work on limited investments and most investors would prefer a much more diversified portfolio. In this article (Part 3) we'll look at how investors can use "passive-pairing" to dramatically cut or eliminate their tax bills on a wider v