All Forum Posts by: Justin Brin

How to find a good Syndication?

Do syndication of any limits when raising money from accredited investors?

What are the best tool to estimate a flip materials cost?

What are the best ways to estimate the material only cost not including labor?

@Bobbie K. @Alex Church @Ryan Davies
What is the disadvantage of a conventional loan for fix & flips?
The bank will not give a loan if the house needs too much work?
The bank will not pay for the construction cost?
Longer time to approve the loan?
Is there anything else?

In the appraisal report I noticed that the appraiser does adjustment in the comparable price depending on the sale date. How is that number calculated?
If the comparable property was sold 2 months ago then how much extra will he put? How are the adjustment calculated?

What about for sq.ft. how are the adjustment calculated if the comparable have different sq.ft.? What will be the formula?

What about for pool and spa?

I noticed the appraiser added $25K for pool and 10K for a spa. Where does he get those numbers from? Is it the average cost to build a pool in that area?

For single home property fix & flip what is the best source of funding?

Quote from @Justin Brin:

Quote from @Account Closed:

Quote from @Justin Brin:

Quote from @Account Closed:

Generally, losses from passive activity (k1 showing losses from something like a real estate syndication for example) can only offset passive activity. Real estate professional (for this posts sake) simply makes rental activity active, so you can use the losses there to offset other active income. 

To answer your question: Any passive gains you may offset. 

What will be examples of passive gains (not including rental income)?

 stocks sold that were held for more then 12 months is a common one 

Looks like according to this link, stocks capital gain can't offset passive losses.

Here is how the IRS defines Passive activities (IRS Publication 925):

This means that you cannot use passive losses to offset capital gains, portfolio yields, ordinary income or any other form of taxable gains.

It seems like the only kind of sell that you can use the allowed losses are in this case:

As the IRS explains, “generally you may deduct in full any previously disallowed passive activity loss in the year you dispose of your entire interest in the activity.” This means that if you sell your passive activity, you don’t have to treat its losses as passive losses. This applies to both the year in which you sell the activity and all suspended losses from this activity as well. To trigger this exception, you must meet three criteria:

• You must sell your entire interest in the underlying passive activity
• You must trigger a tax event, meaning that you must sell your interest for value in a fully taxable transaction
• And you must sell your interest to an unrelated third party, no family or close affiliates.

Source Link

Quote from @Account Closed:

Quote from @Justin Brin:

Quote from @Account Closed:

Generally, losses from passive activity (k1 showing losses from something like a real estate syndication for example) can only offset passive activity. Real estate professional (for this posts sake) simply makes rental activity active, so you can use the losses there to offset other active income. 

To answer your question: Any passive gains you may offset. 

What will be examples of passive gains (not including rental income)?

 stocks sold that were held for more then 12 months is a common one 

Looks like according to this link, stocks capital gain can't offset passive losses.

Here is how the IRS defines Passive activities (IRS Publication 925):

This means that you cannot use passive losses to offset capital gains, portfolio yields, ordinary income or any other form of taxable gains.

Quote from @Bill B.:

Owning a business you do no work at. (A pizza place for example.)

What about short term capital gains? Does it count as passive income? 
(I’m referring to capital gains not from selling rentals). 

Quote from @Account Closed:

Generally, losses from passive activity (k1 showing losses from something like a real estate syndication for example) can only offset passive activity. Real estate professional (for this posts sake) simply makes rental activity active, so you can use the losses there to offset other active income. 

To answer your question: Any passive gains you may offset. 

What will be examples of passive gains (not including rental income)?

Quote from @Glen Wiley:

You don't deduct income, you deduct expenses from your income.

Generally speaking, losses experienced as part of passive investing (like operating long term residential rentals) can only be deducted from passive income.

If you have losses that high then it is worth your money to hire a CPA to prepare your tax return.

They are paper losses not actual losses in the bank.
What will be an example of passive income that is not real estate rentals.
I'm assuming that capital gain from stocks is not included and can't be used to offset real estate losses even though they are passive income?