Retire On Rentals Podcast: Episode with Justin Rupple – Incredible Tools and Strategies for Lowering Your Taxes

Show Notes:

In this insightful episode of Retire On Rentals, host Nicholas Cook interviews Justin Rupple, founder of Elevated Tax Strategies, to uncover powerful tax-saving strategies for real estate investors and business owners. Justin shares his journey from insurance brokerage to specializing in advanced tax strategies, offering a holistic approach to minimizing tax liabilities. From overlooked tax credits like the R&D credit to leveraging entity structures and navigating the new tax bill, this episode is packed with actionable insights to help investors keep more of their hard-earned money. Whether you’re a seasoned investor or just starting out, Justin’s expertise and collaborative philosophy provide a roadmap to accelerate your financial goals.

Key Topics Covered with Timestamps:

• Justin’s Background and Journey into Tax Strategy (00:00:45 – 00:05:30): Justin discusses his transition from a health and life insurance broker to founding Elevated Tax Strategies, focusing on helping clients leverage tax credits and strategies that CPAs often overlook.
• Overlooked Tax Credits and Incentives (00:05:45 – 00:10:15): Justin highlights the Research and Development (R&D) tax credit, explaining its broad applicability, even for non-traditional industries like manufacturing or custom fabrication, and how it’s often missed by CPAs.
• Entity Structure Optimization (00:10:30 – 00:14:00): Justin explains how dual entity structures (e.g., combining LLCs, S Corps, or C Corps) can maximize tax efficiency, tailored to the specific needs of real estate investors and business owners.
• Why CPAs Miss Tax-Saving Opportunities (00:14:15 – 00:18:45): Justin delves into the challenges CPAs face in a high-volume, low-margin industry, leading to risk-averse behavior and missed opportunities for clients.
• Navigating COVID-Era Tax Incentives (00:19:00 – 00:22:30): Justin discusses his firm’s role in helping clients claim Employee Retention Credits (ERC) and other COVID-related benefits, emphasizing the importance of proper documentation.
• New Tax Bill Opportunities (00:25:00 – 00:31:45): Justin highlights key benefits from the recent tax bill, including the enhanced R&D tax credit, 100% bonus depreciation, increased estate tax exemptions, and qualified small business stock exemptions.
• Advanced Tax Deferral Strategies (00:31:50 – 00:35:20): Justin explores options like Opportunity Zones and Charitable Remainder Trusts for deferring capital gains, balancing legacy planning with charitable goals.
• Justin’s Personal Insights and Philosophy (00:35:30 – 00:41:00): Justin shares his “why” (finding opportunities to accelerate clients’ goals), his preference for bourbon over wine, and his guiding principle of the Golden Rule for building trust and collaboration.

Memorable Quotes:

1. On Collaborative Opportunities:
   “There is enough opportunity everywhere for all of us. Whether it be in real estate and tax strategy or whatever it is, opportunities are there. And so if we support each other, if we’re kind to each other, if we’re collaborative, opportunities are gonna find us.”
   – Justin Rupple on the power of collaboration (00:40:30).
2. On Overlooked Tax Credits:
   “A lot of business owners, I have to help them understand what qualifies as R&D is actually much broader according to the tax code than what we usually think about in our minds.”
   – Justin Rupple on the R&D tax credit’s applicability (00:08:00).
3. On CPA Challenges:
   “When you’re stressed and you got a lot on your plate and you’re feeling overwhelmed, you shift into survival mode… You see opportunities as threatening.”
   – Justin Rupple on why CPAs may miss tax-saving strategies (00:16:45).
4. On Tax Code Utilization:
   “There’s nothing in the tax code or even morally that says you’re required to pay more than you legally ought to.”
   – Justin Rupple on leveraging the tax code ethically (00:34:00).
5. On His Passion for Tax Strategy:
   “When someone just sees something that seems like work, it seems noxious, and I see opportunity. That brings me to life.”
   – Justin Rupple on his drive to find tax-saving opportunities (00:38:45).

 
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Sponsor:

This episode is sponsored by SleepSound Property Management, a leading Portland-based company specializing in multifamily and residential real estate. Visit them at sleepsoundpm.com for help with acquiring, operating, protecting, and selling your properties (00:24:30).

Connect with Justin Rupple:

Justin is the founder of Elevated Tax Strategies, dedicated to helping clients maximize tax efficiency. Reach out at elevated.tax or email him at [email protected] (mailto:[email protected]) for a complimentary tax strategy consultation (00:41:15).