How to use real estate to offset personal income

[Dijana Aleksic]

Hi all,

I have a question that day traders may come across. This is my first year day trading and although I did very well I didn’t plan for doing taxes (did not elect trader status on time). Now, at the end of the year I am scrambling to find a way to offset that income and real estate investment came to mind.

What does this scenario look like to you:

1. $300,000 in income from w2 and day trading (day trading $170,000).

2. Buying real estate last minute (closing by end of October latest) at $500,000.

3. Renting 7 days or less and qualifying for material participation. Not living in the property at any time.

4. Plan on doing cost segregation study if it can reduce tax liability for ordinary income.

Is this a lost cause or are there ways to shape this into something useful with the right professional?