All Forum Posts by: Rudolph T.

@Logan Allec, noted :). What if my spouse also makes 150k and can't be a real estate professional? 

There are so many CPAs out there and how do I know if they are knowledgeable with real-estate taxation strategy? @Steven Hamilton II, you sound very well versed with tax, however you are in IL, I need to find somebody local in Central Valley CA

@Anthony Gayden, @Paul Allen,  thank you for your replies. My W2 income is quite a bit over 150k, despite maximizing my 401k, so I don't think I could reduce my MAGI further

@Paul Allen, could you elaborate more on "Suspended losses are taken as ordinary losses when you sell the property. I wrote above that the suspended losses adjust the basis."? Sorry... I don't quite understand what you mean by this.

@Mike Landry, thank you for your insight. Is the amount of tax you pay on net income from your self employed business determined from your tax bracket from W2 income? 

Hello @Paul Allen, thank you for the clarification. It seems that it's not something I have to worry about if the losses are simply suspended until subsequent years. My primary goal to be in real estate business is to eventually generate passive cash flow enough to cover my monthly expenses

Hello my fellow BPs, I'm considering of starting my first investment property soon. I have been doing my own research by reading the BP blogs, listening to the podcasts, asked people questions (including my CPA). However, there's still one burning question that I feel I don't completely understand as it's not frequently discussed. I'm a high income earner with >150k/year, single and becoming a real estate professional is not an option. What's the best tax strategy for me to own real estate investment properties if I can't deduct passive losses against my earned W2 income? I have been told that in my situation, I can only use passive losses to offset passive income. Do I need to have a business entity (LLC, S corp) to do this? Thanks!