All Forum Posts by: Bruce M.

As usual, thanks for all the tips and suggestions from all of you. You have each given me bits of good information to tie together and move forward on this. Thanks!

Ok this is too funny, NEWSFLASH: I am now a 51 after my last post above!!! Life is Good!

I admit I am fairly new, but don't I get like a 51 Josh? LOL. I am just kidding here, but I guess I am curious what it takes to get to 51. I am new but have been fairly active since joining, in my opinion at least, yet I am still stalled at 50, the same number for someone who signs up today. It this a sign I have not done much in here?

Can someone tell me if the profits from a flip would be considered a capital gain or ordinary income? I have an LLC set up for my rental properties that filters to my personal tax return as passive income via a K-1. If I flipped properties in my LLC, what would the profit from the flip be considered? Income or capital gain (If gain, short or long term?) I ask because I have some large long and short term capital loss carryovers from bad stock investments. I was wondering if by flipping I could offset some of these losses, hence I would not have to pay taxes on the profits until I ate up my capital losses. I know most of you are not CPAs and will take any replies with a grain of salt. If would be nice to hear from one of the accountants in here too. Thanks!

Edit: It appears I posted this in the wrong forum and not sure how to move it?

Hey Matt, its Bruce.....sounds like that house we talked about is going through for you. Let me know how it all works out when you have time.

On the real estate professional, I think because you are a teacher someday you may be able to make a case and qualify. That being said there is no way with one or two rentals, you would qualify for it.

Be aware, the IRS is watching this exact thing very carefully now a days. There was a time that they didn't, but they are now. You can google it and find lots of articles and reports done on it. They are becoming more aggressive and focused (and auditing) real estate losses in general, and especially those who work full time and claim to be a real estate professional, and claim losses along with it.

Thanks Rich, I will be missing all the Thursday festivities but Friday night at Bubba's sounds good. Perhaps I can add NV to the mix of areas. That is where I am most active right now.

Thanks for the insight. He is the prior owner, not a tenant. The property is in NV, not CA.

Karen, I agree, I have done a lot of traveling and Orange County is one of the nicest places I have been too. There are reasons why it is so expensive, and it is expensive. I wlll check out your group.

Wow, a multi-state, state of the market pow wow in a sense. Sounds great and figures I will be missing it with my late midnight arrival!

@Cheryl C, If you find any info out, please post it. I have found the FL insurance market the worst in any state I have ever invested in, and it is one of the reasons I don't buy more properties in FL. You may also want to try a company called Southern Fidelity but you have to go through one of their agents. I use them, not by choice, but because no one else but Citzens will write me, and they are even more expensive.