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Updated over 5 years ago,
What 'offsets' passive losses? Notes? Owner carry interest?
Hello All,
I am well under the income threshold to be able to take the up to 25K in passive losses on my rentals right now. However, I am looking at some larger properties and doing Cost Segregation Studies that would likely put me over that 25K mark.
My question is what qualifies as passive income that those losses could be used against? I dont think I will ever qualify as a RE professional I retire from my job down the road.
I am wondering if I sold a property or two that I own as some form of seller financing if that interest income would count? Or, if I invested in other peoples Notes if that would count.
At this point I have never had much interest income, or capital gains for that matter as I have just been buying and not selling yet, so am unfamiliar with it.
Thanks, Dan Dietz