What if you could use cost segregation tax benefits with just 100 hours of work instead of 750—and still keep your high-paying W-2 job?

In this advanced episode, Angel Williams continues her conversation with Gian Pia from KBKG to explore sophisticated tax strategies that most investors never discover. Gian reveals the short-term rental loophole that allows W-2 employees to materially participate with only 100 hours instead of the nearly impossible 750-hour real estate professional requirement. They dive into the complexities of 1031 exchanges with carryover basis, why you need a real estate-specialized CPA, and how passive income limitations actually work in practice. This conversation also covers KBKG's audit support services and provides a discount code for listeners ready to implement these strategies.

[00:01 - 06:00] 1031 Exchange Complications and CPA Selection

• How carryover basis and excess basis work in complex exchanges

• Why you need a CPA who specializes specifically in real estate investing

• The critical questions to ask accountants about cost segregation knowledge and willingness

[06:01 - 11:00] Real Estate Professional Status Reality Check

• Why W-2 employees almost never qualify for real estate professional status

• The 750-hour requirement plus the "more than any other business" rule

• How even documented proof may not be enough for IRS approval

[11:01 - 16:00] The Short-Term Rental Game Changer

• How short-term rentals (30-day average stays) fall under hospitality rules

• The 100-hour material participation requirement vs. 750 hours for traditional rentals

• Why this allows high-income W-2 employees to use cost segregation benefits against ordinary income

[16:01 - 21:15] Practical Implementation and Audit Protection

• How passive income limitations work across all rental properties

• KBKG's included audit support services with their $500 software

• Discount code: ACADEMY2025 for 10% off at costsegregation.com

Connect with Gian:
LinkedIn: Gian Piazza (the only one in the world!) https://www.linkedin.com/in/costsegregationservices/
Website: costsegregation.com

Key Quotes:
"There's way too much in the tax code to understand it all unless you niche down and you focus on one or two industries." - Gian Piazza

"Most of the people in the accounting world don't just offer up information to you. You have to ask the right questions to get the information." - Angel Williams

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