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Message
Real estate professional benefits in Investment property, need expert advice
Posted on 4/12/14 at 9:14 pm
Posted on 4/12/14 at 9:14 pm
My wife (real estate agent) and I purchased our first residential investment property last year. I do not fully understand the benefits of the real estate professional pertaining to passive income. Can one of you experts please put it in layman's terms for me. THANKS.
4
Posted on 4/12/14 at 9:18 pm to Trophy Husband
Your wife doesn't want to help you out with this?
Posted on 4/12/14 at 9:41 pm to Trophy Husband
God I hope I never meet her. Apparently she doesnt know shite about real estate or hates your guts.
Posted on 4/12/14 at 9:55 pm to Mr.Perfect
Basically, any and all of your income, passive or not, belongs to your wife because she is a real estate professional.
Posted on 4/13/14 at 10:39 am to Trophy Husband
quote:
Trophy Husband
Prayers sent
Posted on 4/13/14 at 11:10 am to Trophy Husband
In my experience, after accounting for depreciation and Capex, you really don't stung on taxes.
No eaiser way to acquire wwealth than through real estate
No eaiser way to acquire wwealth than through real estate
Posted on 4/13/14 at 11:26 am to I Love Bama
Owning rental real estate doesn't really require you to go see a professional.
Owning rental real estate and claiming real estate professional, I'd go visit someone. Even if just for a year to get it set up properly.
In a nutshell, for most people, real estate rental is a passive activity. Thus, there are limits to how much losses, if any, are deducted against your other income each year. The main reason for this treatment is that people don't spend a lot of time on their real estate rentals.
This is oversimplfied, but basically there is an election available that allows you to combine the time you spend on all real estate - including being a realtor - into one "activity", thus, removing the passive "taint" on the rental losses.
The nut of all of this is that you can take your rental losses against non-rental income.
There is an election that must be filed the first year you do this, and you have to make sure your wife qualifies. Thus, why you really need to go see a pro.
File an extension, wait a week or two, and call somebody. This is one of those times where it's worth a few hundred bucks to make sure you get it right.
Owning rental real estate and claiming real estate professional, I'd go visit someone. Even if just for a year to get it set up properly.
In a nutshell, for most people, real estate rental is a passive activity. Thus, there are limits to how much losses, if any, are deducted against your other income each year. The main reason for this treatment is that people don't spend a lot of time on their real estate rentals.
This is oversimplfied, but basically there is an election available that allows you to combine the time you spend on all real estate - including being a realtor - into one "activity", thus, removing the passive "taint" on the rental losses.
The nut of all of this is that you can take your rental losses against non-rental income.
There is an election that must be filed the first year you do this, and you have to make sure your wife qualifies. Thus, why you really need to go see a pro.
File an extension, wait a week or two, and call somebody. This is one of those times where it's worth a few hundred bucks to make sure you get it right.
This post was edited on 4/13/14 at 11:28 am
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