There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.

Hi BiggerPockets community,We are a married couple based in the California Bay Area, both working as software engineers with a combined income of close to a Million USD.

So when the stuff hit the fan he deeded it to his wife who then promptly divorced him and turned on him.. of course does not help to marry a 32 YO when your 57  LOL not a lot of loyalty there.  

Bobby, the accredited investor standard was set in 1933 then revised in 1982 to the current 1 million net worth or 300k married amounts, but to adjust for inflation they should be re-set to 3.2 million and around 700k, which would help to weed out a lot of the inexperienced investors, who as Ruth from "Ozark" would say "don't know **** about f$%k!"

Living in the property for two years likely allowed you to claim the capital gains exclusion... up to $250K for singles or $500K if married.

I “hope” you are not married or it will make it very difficult as you can’t have a disregarded multi-member LLC except in community property states.

Since I am married and have school age kids, I place a real premium on minimizing my management time. 

@Brett JurgensThe "2 out of the last 5-year rule" in real estate allows homeowners to exclude up to $250,000 ($500,000 for married couples) of capital gains from the sale of their primary residence if they lived in the home for at least two out of the five years before the sale.

Also, got married and have a blended family.

For married couples, it doubles to $600.