I have seen instances where a 1031 exchange was not required such as1) The overall gain from the sale of the investment property was very small or even negative2) The taxpayer had enough passive loss carryforwards to offset the gain.A 1031 exchange is a very powerful tool put it has to make sense before going forward.

I’m sure the construction loans have completion guarantees beyond the ordinary carveouts so are they truly non recourse?

@Evan Polaski It took me at least a year of sourcing sponsors, finding investment group resources, analyzing opportunities, and understanding proper diligence; so, following a sponsor for a long time happens in the ordinary course of getting familiar with an investment strategy (particularly one that lacks control). 

Or they have jobs that won't allow them to commit the time.Therefore, partners who write checks into real estate deals cannot use the wonderful passive losses created to offset their ordinary income from their job or business.But what if I told you there might be a way to use leverage and depreciation even if you aren't a pro?

Would a DST work to defer taxes on ordinary income from say flipping properties and using the trust to invest in more properties?

However, capital losses cannot directly offset rental income, though they can reduce up to $3,000 of ordinary income annually and carry forward.

Law enforcement would benefit greatly (as will taxpayers) from even a cursory examination of Emergency Business Relief based on the dollar amount involved and more thorough understanding of the owner, Ron Fossum, documented history of financial fraud.Reg D filings for Marco Santarelli, Another Entity, and 82% Returns:A search of the SEC database confirms that Norada Capital Management, not Norada Real Estate Investments, raises money from investors.

Note that California taxes capital gains as ordinary income (up to 13.3%) and does not conform to federal bonus depreciation rules.This post does not create a CPA-Client relationship.

Hi Glenn, interest income from loans is generally taxed at your marginal tax rate as ordinary income.

As your Modified Adjusted Gross Income (MAGI) increases, the amount of rental losses you can offset against your ordinary income phases out.