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Updated almost 11 years ago on . Most recent reply

Derek Petersen's profile image
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Derek Petersen
  • Investor
  • from San Diego, CA
  • Member since Feb 26, 2013
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Derek Petersen's profile image
Derek Petersen's profile image
Derek Petersen
  • Investor
  • from San Diego, CA
  • Member since Feb 26, 2013
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Derek Petersen
  • Investor
  • San Diego, CA
82
Votes |
125
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Tax, SDIRAs & Cost Segregation

W2 and Real Estate Professional

Derek Petersen
  • Investor
  • San Diego, CA
Posted

What are the experiences from BP folks that have a full time W2 income plus claim "Real Estate Professional" on their return?

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Derek Petersen's profile image
Derek Petersen's profile image
Derek Petersen
  • Investor
  • from San Diego, CA
  • Member since Feb 26, 2013
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Derek Petersen's profile image
Derek Petersen's profile image
Derek Petersen
  • Investor
  • from San Diego, CA
  • Member since Feb 26, 2013
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Derek Petersen
  • Investor
  • San Diego, CA
82
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125
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Derek Petersen
  • Investor
  • San Diego, CA
Replied

Yes, I do understand the rules, but probably not worth it if claiming RE Pro plus having a full time W2 lands you in the audit pile. Realistically, I probably did work the hours.

The $25k special allowance begins to phase out at $100k and gone at $150k. If you are married, it begins at $50k and completely phases out at $75k. You talk about a real estate marriage penalty.

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