115: Reducing Taxes and Building Wealth Proactively with Thomas Castelli

You might think accounting is the most boring aspect of real estate investing—but what if we told you having the right accountant could save you thousands of dollars on taxes? On this episode of Zen and the Art of Real Estate Investing, Jonathan interviews Certified Public Accountant and real estate investor Thomas Castelli. Thomas is an accountant with Hall CPA who helps real estate investors and business owners reduce their taxes and build wealth. He is also the founder of New Babylon Capital, a holding company for his investments. It may sound easy to reduce taxes, but it isn’t. Jonathan and Thomas’s conversation delves into the benefits of having an accountant specialized in real estate investing, why bookkeeping is often an investor’s biggest struggle, and the items business owners buy for intentional depreciation purposes. You’ll also hear what an initial consultation with an expert like Thomas consists of, the reason you don’t have to be afraid of audits if you’re organized, and Thomas’s focus on passive real estate investing. Finally, Jonathan and Thomas uncover what it takes to become qualified as an accredited investor, what it takes to get started in syndications, and the one tax mistake investors continue to make—and how you can avoid it. For an in-depth conversation with a knowledgeable tax expert, don’t miss Jonathan’s interview with Thomas Castelli to take your investing career to the next level. In this episode, you will hear: The benefits of having an accountant who specializes in real estate investing Why investors struggle with bookkeeping more than other aspects of accounting Thomas Castelli’s entrance into real estate investing with syndications Putting yourself in a good position from a tax perspective by owning real estate The things people buy for intentional depreciation as business owners The ins and outs of an initial consultation to work with an accountant like Thomas and viewing them as a partner in your business Audits and why you don’t have to be afraid of them if you’re organized Real estate professional status and how it impacts taxes Thomas’s preference for passive real estate investing and syndications Qualifying as an accredited investor The hardest part of raising capital to buy into syndications The communities that can help you find quality syndicators or sponsors when you’re first beginning your investing path The one tax mistake investors continue to make and how to avoid it Flipping and the tax consequences of this type of real estate investing Diminished buying power when depreciating assets on tax returns and Thomas’s advice for combatting this problem Follow and Review: We’d love for you to follow us if you haven’t yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We’d love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select “Ratings and Reviews” and “Write a Review” then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. If you enjoyed this episode, we've created a PDF that has all of the key information for you from the episode. Just go to the episode page at http://www.trustgreene.com/podcast/zen/115 to download it. Supporting Resources: Visit Thomas Castelli’s website - thomascastelli.com Thomas’s YouTube channel - www.youtube.com/@TheRealEstateCPA/videos Find Thomas on Facebook - www.facebook.com/castellithomas Thomas on Instagram - www.instagram.com/thomascastellicpa Connect with Thomas Castelli on LinkedIn - www.linkedin.com/in/thomascastelli Thomas on Twitter/X - twitter.com/thomascastelli_ Find Thomas on TikTok - www.tiktok.com/@thomascastellicpa Hall CPA - www.therealestatecpa.com/thomas Website - www.streamlined.properties YouTube - www.youtube.com/c/JonathanGreeneRE/videos Instagram - www.instagram.com/trustgreene Instagram - www.instagram.com/streamlinedproperties TikTok - www.tiktok.com/@trustgreene Zillow - https://www.zillow.com/profile/StreamlinedReal Bigger Pockets - www.biggerpockets.com/users/TrustGreene Facebook - www.facebook.com/streamlinedproperties Email - info@streamlined.properties Episode Credits: If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.