Ways to offset passive losses?

[Larry Flanagan]

Just finished my 2016 taxes and I have about $30k in passive losses that I have to carryover.  Besides buying better cash flowing properties in the future, are there any other ways to take advantage of passive losses?

[Lance Lvovsky]

Assuming you don't qualify as a RE professional, then yes there are ways.

You could invest in another business. As a passive investor, that income would be passive income to you. Make sure the business is a profitable one and will pass on positive taxable income to you. This business could even be an LLC that holds rentals that passes out income on a K-1 to you.

You could also buy more rentals and underwrite them in a way to make sure they not only cash flow, but also generate taxable income.

Your suspended passive losses are "released" when you sell a property.