Real Estate Investing is the Most Powerful Tax Tool
-But It Shouldn’t Be Confusing
Learn How to Save $10,000s in taxes without lifting a finger.
Measure Your Business Efficiency with the ROE Calculator
Understanding how well your business turns equity into profit is key to making smarter financial decisions. The Return on Equity (ROE) calculator helps you quickly determine how effectively your company is using shareholder investments to generate income.
Whether you're an investor analyzing potential opportunities or a business owner tracking performance, this simple tool gives you clarity in seconds.
How to Use the ROE Calculator Spreadsheet
🔹 Step 1: Gather Your Numbers
You’ll need:
Net Income – The company’s profit (usually found on the income statement).
Shareholder’s Equity – Total equity owned by shareholders (usually on the balance sheet).
🔹 Step 2: Input Your Data
Go to the spreadsheet and:
👉 In Cell B2, enter your Net Income
👉 In Cell B3, enter your Shareholder’s Equity
🔹 Step 3: View the Result
Once both values are entered, the ROE will automatically be calculated in Cell B5 using this formula:
iniCopyEdit
ROE = Net Income / Shareholder’s Equity
📈 The result will be displayed as a percentage, showing how efficiently the company is generating profits from shareholders’ investments.
🔹 Step 4: Interpret the Result
10–20% ROE is generally considered good (varies by industry)
Compare it with similar businesses for better insight
A higher ROE suggests better efficiency, but extremely high ROE could indicate high debt
✅ Example:
If you input:
Net Income: $100,000
Shareholder’s Equity: $500,000
👉 The ROE = 20%
What Type of Investor Are You?
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Short-Term Rentals
STR loophole. Material participation. Avoid the real estate professional status hurdles.
Long-Term Rentals
Maximize depreciation, avoid passive loss limitations, and unlock Section 469 strategies.
Commercial Real Estate
Cost segregation.
Bonus depreciation.
Entity structuring.
Understand K-1s, passive loss limitations, and what you can and can’t deduct.
Syndications & LPs
Don’t guess your way through it—we’ll walk you through the best setup for your goals.
Tax Strategy Blueprint
Tax Strategy
Get ahead with a customized tax plan tailored to your goals for the upcoming year.
Tax Filing
Our personalized tax preparation services help you maximize deductions while staying fully compliant with current tax laws.
Cost-Segregation Studies
Did you get a cost segregation study done?We can help pinpoint and accelerate depreciation deductions to help property owners boost their tax savings.
Hear Our Client Success Stories
"Before learning from Derek Fujikawa, taxes felt overwhelming. Now, I’m saving over $20,000 a year through real estate strategies I didn’t even know existed. It’s honestly been life-changing."
— Melissa R., Real Estate Investor
"Derek made real estate tax savings simple. I used to dread tax season—now I look forward to the savings. I didn’t lift a finger, and I’m seeing real results."
— James T., Small Business Owner
For Real Estate Investors – FAQ Section
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Not necessarily. While LLCs provide legal protection, they don’t offer tax benefits by default. You can own rental property in your personal name and still take advantage of the same deductions. However, for liability protection or if you’re scaling your portfolio, an LLC (or a holding company structure) may be beneficial. We help you weigh the pros and cons based on your goals.
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Yes, but how you write them off depends on what was done. Repairs can be deducted in the year incurred, but major improvements (like new HVAC, roofs, kitchens) need to be depreciated over time. With a cost segregation study, you might be able to accelerate some of those write-offs.
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To qualify, you must:
• Spend 750+ hours per year on real estate activities
• More than 50% of your working time must be in real estate
If you meet both tests and materially participate in your properties, you can use rental losses to offset active income (like W-2). This is a powerful tool, especially for high earners.
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Yes. Cost segregation isn’t just for new purchases. Even if you bought the property years ago, you can file a Form 3115 to “catch up” on depreciation you could’ve taken—and potentially create a large current-year deduction.
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Travel related to managing or inspecting your properties is deductible—airfare, hotels, rental cars, and meals (at 50%). Just keep good records and tie each trip to a business purpose. Pro tip: combine property visits with other real estate-related activities to maximize deductions.
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The Short-Term Rental (STR) Loophole allows you to treat your property as a non-passive business if:
• The average stay is 7 days or less, and
• You materially participate in managing it (e.g. 100+ hours/year and more than anyone else)
This means you can deduct rental losses against W-2 or other income—even without real estate professional status.