Rental income or Management Income

[Kyle Goeman]

Hi my name is Kyle, First time poster long time reader.

I have a question I would run past my accountant but not sure if its a dump question or not.

I have been in R.E. investing since 2007. I have a few rental properties and one on Contract for deed.

My accountant said the interest I get from the contract for deed is taxed as investment income – capital gains.

My question is now I have a few other properties from other Investors in the area that want me to manage them. How is my Management income taxed and treated on my Profit-loss. Can I use this income to offset losses on a property?

Thanks for all the help!

[Jon Holdman]

But Steven Hamilton II what if she's well behaved and not ornery? 750 hours a year of orneriness would be two hours a day. She'd not be much fun to be around. :-)