D1 Agent Group is a real estate consulting group based in Peoria, Arizona, specializing in helping clients build personalized real estate plans that leverage tax strategies to maximize their investment returns and reduce taxable income.

Our services are ideal for business owners, high-income professionals, and real estate investors who are looking to optimize their tax savings, build wealth through strategic real estate investments, and reduce their overall tax liability.

Real Estate Professional Status (REPS) is a tax designation that allows real estate investors to offset their active income with passive losses from real estate investments. To qualify, you must meet specific IRS criteria, including spending over 750 hours per year on real estate activities and having more than half of your total working time dedicated to real estate. Achieving REPS can result in significant tax savings.

The Short-Term Rental (STR) Loophole allows property owners to qualify for tax benefits similar to REPS without meeting the stringent hour requirements. If your property is rented out on a short-term basis (average rental period of seven days or less), you can use passive losses to offset active income, reducing your tax liability.

Cost segregation is a tax strategy that accelerates depreciation on certain components of your property. By identifying and reclassifying assets with shorter depreciation periods, you can increase your depreciation deductions and reduce your taxable income. This strategy can significantly improve cash flow and free up capital for further investments.

A 1031 Exchange allows real estate investors to defer paying capital gains taxes on an investment property when it is sold, provided another like-kind property is purchased with the profit. This deferral lets you reinvest the full proceeds into a new property, increasing your investment capital and compounding growth over time.

To qualify for REPS, you must meet the following criteria:

• Spend more than 750 hours per year in a real property trade or business.

• More than half of your total working time must be dedicated to the real property trade or business.

• Own at least 5% of the business.

• Maintain detailed records and documentation to prove your involvement.

Achieving REPS allows you to:

1. Offset active income with passive losses from real estate investments.

2. Significantly reduce your overall tax liability.

3. Increase cash flow and reinvest more capital into your real estate portfolio.

We provide guidance on how to document and maintain your material participation in real estate activities. This includes tips on tracking hours, managing properties, and ensuring compliance with IRS requirements to qualify for tax benefits like REPS and the STR Loophole.

We offer continuous support and expert guidance to help you adapt your real estate strategy as your needs and goals evolve. Our services include regular consultations, strategy adjustments, and referrals to licensed professionals for additional services like CPA/tax services and legal advice.

Getting started is easy! Schedule a free consultation with us through our website or contact us directly. We’ll assess your financial situation, discuss your goals, and create a personalized real estate strategy to help you achieve maximum tax savings and investment returns.

During the initial consultation, we will:

• Assess your short and long-term goals.

• Review your available resources and current investment portfolio.

• Discuss potential real estate strategies and tax-saving opportunities.

• Create a customized action plan tailored to your needs.