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JF 4095: The 3 Types of Income Every LP Must Understand

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Manage episode 520343053 series 109682
Content provided by Best Ever CRE and Joe Fairless. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Best Ever CRE and Joe Fairless or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Pascal Wagner breaks down how the IRS categorizes income into three buckets—active, portfolio, and passive—and why high-income earners often misunderstand how tax write-offs actually work. He explains common investor mistakes, including expecting real estate depreciation to offset W-2 or stock-market gains, and shares the simple rule that changed his entire tax strategy: “you can only offset like with like.” Pascal also walks through exceptions such as oil and gas, real estate professional status, and opportunity zones, along with how wealthy investors intentionally shift income toward passive buckets for long-term tax efficiency. This episode teaches investors to stop chasing IRRs and start choosing deals based on what problem they solve in their tax plan.

Alternative Fund IV is closing soon and SMK is giving Best Ever listeners exclusive access to their Founders’ Shares, typically offered only to early investors. Visit smkcap.com/bec to learn more and download the full fund summary.

Join us at Best Ever Conference 2026! Find more info at:

https://www.besteverconference.com/

Join the Best Ever Community

The Best Ever Community is live and growing - and we want serious commercial real estate investors like you inside. It’s free to join, but you must apply and meet the criteria.

Connect with top operators, LPs, GPs, and more, get real insights, and be part of a curated network built to help you grow.

Apply now at⁠ ⁠⁠www.bestevercommunity.com⁠

Podcast production done by⁠ ⁠Outlier Audio⁠

Learn more about your ad choices. Visit megaphone.fm/adchoices

  continue reading

4134 episodes

Artwork
iconShare
 
Manage episode 520343053 series 109682
Content provided by Best Ever CRE and Joe Fairless. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Best Ever CRE and Joe Fairless or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Pascal Wagner breaks down how the IRS categorizes income into three buckets—active, portfolio, and passive—and why high-income earners often misunderstand how tax write-offs actually work. He explains common investor mistakes, including expecting real estate depreciation to offset W-2 or stock-market gains, and shares the simple rule that changed his entire tax strategy: “you can only offset like with like.” Pascal also walks through exceptions such as oil and gas, real estate professional status, and opportunity zones, along with how wealthy investors intentionally shift income toward passive buckets for long-term tax efficiency. This episode teaches investors to stop chasing IRRs and start choosing deals based on what problem they solve in their tax plan.

Alternative Fund IV is closing soon and SMK is giving Best Ever listeners exclusive access to their Founders’ Shares, typically offered only to early investors. Visit smkcap.com/bec to learn more and download the full fund summary.

Join us at Best Ever Conference 2026! Find more info at:

https://www.besteverconference.com/

Join the Best Ever Community

The Best Ever Community is live and growing - and we want serious commercial real estate investors like you inside. It’s free to join, but you must apply and meet the criteria.

Connect with top operators, LPs, GPs, and more, get real insights, and be part of a curated network built to help you grow.

Apply now at⁠ ⁠⁠www.bestevercommunity.com⁠

Podcast production done by⁠ ⁠Outlier Audio⁠

Learn more about your ad choices. Visit megaphone.fm/adchoices

  continue reading

4134 episodes

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