Taxes, STRs, and Smarter Investing W/Ryan Carriere
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Episode Description
Welcome to the On The Rise Podcast! In this episode, Jeremy is joined by Ryan Carriere, CPA, real estate investor, and founder of Carrier Tax Consulting. Ryan shares how a BiggerPockets episode early in his career pushed him toward house hacking, short term rentals, and eventually building a tax firm built specifically for high income real estate investors. He breaks down common tax misconceptions, the real requirements behind Real Estate Professional Status, and why the short term rental tax strategy remains one of the most powerful tools available.
Ryan also demystifies cost segregation, accelerated depreciation, and depreciation recapture in clear, practical terms, helping investors understand how to use these strategies responsibly. This episode is packed with actionable insights for anyone looking to reduce taxes, structure investments properly, and build long term wealth with confidence.
Summary
Tip #1: You Don’t Need to Start Big to Start Smart
“Our first house hack was literally a basement that barely counted as a bedroom.”
Ryan began like many investors—scrappy and resourceful. That early experience taught him the importance of taking action rather than waiting for the perfect deal.
Tip #2: Many High Earners Misunderstand Tax Brackets
“People think once they cross into a bracket, all their income is taxed at that rate.”
One of the biggest misconceptions Ryan sees is misunderstanding how progressive tax brackets actually work, which leads to poor planning and false expectations.
Tip #3: An LLC Does Not Make Personal Expenses Deductible
“Just because you run it through an LLC doesn’t mean it’s a write-off.”
Ryan clears up a widespread myth around business entities and explains why proper documentation matters far more than the LLC itself.
Tip #4: Real Estate Professional Status Is Powerful—but Complex
“It’s not just 750 hours; you also have to materially participate in your rentals.”
Ryan explains why REP status works especially well when one spouse doesn’t hold a full-time job, and why material participation is the true test that IRS auditors look at.
Tip #5: The Short Term Rental Strategy Is Often More Accessible
“No 750-hour requirement. No ‘more than half your time’ requirement. That’s why it’s so huge.”
The STR tax strategy can convert rental losses into non-passive losses, allowing them to offset W-2 income when structured correctly.
Tip #6: Cost Segregation Creates Immediate Tax Shelter
“A cost seg pulls out the five-, 15-, and 39-year components so you can accelerate depreciation.”
Ryan explains how properties produce large year-one depreciation through component breakdown plus bonus depreciation—now back at 100 percent.
Tip #7: Depreciation Recapture Isn’t Always a Negative
“If you’re in a lower bracket later, or reinvest the savings, you still win.”
He clarifies how recapture works and why the time value of money often makes early depreciation a net positive.
Tip #8: Passive Investors Still Benefit—If They Plan Correctly
“Passive losses can offset passive gains or even gains from selling another property.”
Ryan outlines the “lazy 1031” approach, where passive investors can use new LP losses to offset taxable gains without doing a formal exchange.
Tip #9: Red Flags When Choosing a Tax Advisor
“If it sounds too good to be true, it’s probably illegal.”
Ryan warns about social-media tax myths, cheap preparers, and advisors who only file returns instead of actively planning.
Tip #10: A Purpose-Driven Why Builds a Purpose-Driven Business
“My why is to honor God with my time, talents, and treasures.”
Ryan grounds his work, his family life, and his business values in faith, integrity, and service—shaping how he shows up for clients and his community.
Resources and Links
Website
Carrier Tax Consulting
https://www.carrieretaxconsulting.com/
Social Media
LinkedIn – https://www.linkedin.com/in/ryancarriere/
BiggerPockets – Active under “Ryan Carriere”
