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Updated over 1 year ago,
Mixing passive income from personal real estate and real estate syndicate
I have 2 different types of investments
a) rental - keeps on giving me passive losses because of depreciation
b) K1 syndicates - give me passive losses till they liquidate at which time I get a Long-term capital gain and a cumulative passive loss that I can now realize as income loss on schedule 1 that ultimately flows onto 1040.
If I invest in an asset that gives me passive income (call it c), can I use that passive income to offset (a) rather than (b).
Why am I asking?
I plan to keep (a) and pass onto heirs. If I can offset my passive income (c) vs (a), then my passive income will be totally tax free. With (a) I don't worry about depreciation re-capture since I pass onto heirs.
Examples of passive income
* Invest in ATM machines - I get income every month, after 8 years my capital is gone so I get Long term capital loss after 8 years. The income I get every month is passive income.
BTW, on a separate question - do you guys know any places to get passive income without headaches. Real estate - difficult to get passive income stress-free.