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

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. ============================================ Join 50K+ investors reading the Best Ever Newsletter each week: https://bit.ly/3SKhb7K STAY IN TOUCH ➤Newsletter: http://bestevercre.com/newsletter ➤Facebook Group: https://facebook.com/groups/BestEverShow ➤Facebook Page: https://www.facebook.com/bestevercre ➤Twitter: http://twitter.com/bestevercre ➤Instagram: https://www.instagram.com/bestevercre ➤Website: http://bestevercre.com ➤Book: https://amzn.to/3rXBfrA ➤iTunes: https://apple.co/3CxEyLe ➤Spotify: https://spoti.fi/3etJngD ➤Stitcher: https://bit.ly/3T8MAkD