All Forum Posts by: Greg O'Brien

@Stevee Danielle this may help. BTW, there is no loophole, its the law!

https://www.biggerpockets.com/topics/1056436

@Chris Henry By property is best practice. You may be able to Group like kind properties in some cases (combining hours)

@John Carbone no. You can’t selectively apply the loss. Any excess is carried fwd as an NOL.

Note - excess loss business limits can apply here in some cases

@Michael Meegan read this. These ?s come up all the time

https://www.biggerpockets.com/topics/1056436

@Bruce Woodruff Sch C is technically incorrect if no substantial services are provided (IRC 1402 kick in). IRS clarified in the Dec 21 CCA legal memo. You can have a nonpassive Sch E under the Regs (best scenario) though!

https://www.biggerpockets.com/topics/1056436

@Pam Smith https://www.biggerpockets.com/topics/1056436

@Bonnie Griffin Kaake 99% of new investor returns our team reviews has STRs improperly depreciated over 27.5 years!

@Christina VandenBerg yes, Excess Biz Loss rules IRC 461

@Alex Garcia correct. The memo shows IRC 469 is decoupled from SE Tax based on the criteria laid out. Those memos do not hold authoratative weight but shows the IRS’ thoughts!

@Alex Garcia Thanks! If STRs < 7 days, no substantial services = E and NOT C

Why?

IRC 469 and IRC 1402 (SE tax) are not connected at the hip. Its very possible to have a nonpassive income or loss on Sch E that is not active income (Sch C).

In January 2022 the IRS legal department actually confirmed that what Im describing is possible (See CCA memo)!