All Forum Posts by: Account Closed

179 also does not allow you to increase a loss, we don't even look at it as we can utilize bonus without the limitations They in effect create the same effect. You should be looking at BONUS Depreciation which would allow you to accelerate deductions.

@Account Closed

That screen shot has nothing to do with RE Pro or this thread, for that matter. It has to do with the new 20% deduction, and wholesaling is not consulting. In other words, ignore this screen shot - you are NOT a "specified service" when asked by software.

As far as how your income is taxed, both wholesaling and rentals, at $400k profit it is critical to work with a tax planning specialist. Find one, there're 20+ of us here.

I guess you're not clear about the RE Pro. RE Pro status is only needed by landlords who have losses from rentals but cannot deduct theses losses - either because they have too much losses or too much income.

To qualify for RE Pro, there're several requirements, including requirements to spend a lot of hours in real estate business (750 a year) and spend more hours in real estate than in non-real-estate pursuits (like a W2 job). Amount of income is irrelevant.

If you're a full-time wholesaler and flipper, you probably qualify for RE Pro - assuming you even need to qualify, i.e. you have rentals with losses.

@Alberto Ramirez

It depends on how the wholesale is structured. Is there a double-close or are you just getting a "fee"?

You should be reporting the income regardless if you get a tax form or not.

I would not say that JR's statement is not correct. I would say that it is not necessarily correct, or rather correct under some specific circumstances: if the business is "active" (as in wholesaling or flipping), if it is profitable, if it benefits from an S-corporation treatment and if such treatment is in fact elected. 

In my earlier comment, I referred to a situation like this one as one of the possible complications.

Not sure what you're asking. We were talking about selling rental properties. Dealers, aka flippers, could never use installment method. It's not a new rule.

@Lamont Marable @Natalie Schanne 

I last was at the property about 10 days earlier. Nothing was unusual. 

The power had been turned off, they had the power turned on. I'll find out monday how they did that and in whose name. Same with water. Water was off. They got the water turned on. They even got cable hooked up. These guys are good.

What the police explained to me is that if they believe there is a possibility of the lease being valid it is a civil matter and it requires an eviction. That is what these guys planned. 

However, if there is reason to believe a "crime occurred" it becomes a criminal action and no eviction is required, they get hauled away if present (at least in Phoenix, other jurisdictions, who knows.)

Because it is an "ongoing criminal investigation" I can't give details yet of how I convinced the officers it was a crime and not a civil action. I learned this little gem from another experience awhile back that was much more benign. They don't teach you this things in school. It's on the job training.

Yeah, what was supposed to be a 30 minute routine visit was a 5 hour experience. That was not expected and not planned into my day.

Through this I learned to have proof that the property belonged to me readily available so that the police would take action and the fake lease wouldn't be a plausible piece of proof for the bad guys. In my case I went online to the county records and called up the Warranty Deed to show the police. You could also print off the Warranty Deeds of your properties and carry them in a binder in your car. I don't favor that approach but if you can't find the paperwork online it might be the best option.

Still more to say, but this post is getting long.