If you sell after 1 year of ownership or more you will be taxed at capital gains rate.If you sell within a year of ownership that gets taxed as ordinary income.

@Chris SeveneyHit enter too soonWhat I was going to write was one of the biggest omissions I see when people do their due diligence is understanding tax consequence.For example if a sponsor is paying as a dividend which is taxed at dividend rate compared to ordinary income on a k1 that can have significant consequencesIf you are in the 37% bracket and were looking at a 10% return ordinary income it’s net less of an 8% return taxed as a dividend.

I remember talking to the guy who started it years ago he was Aussie or Brit or something had an accent anyway..

@Kyle Bambu I believe short term capital gains are taxed as ordinary income, which is what I believe assignment deals would also get taxed at.

Then I schedule a time to show up with an introduction letter, perform my first inspection, and answer any questions.Intro letter is short with instructions for paying rent, contacting me for ordinary questions/concerns/maintenance, and how to reach me for emergencies outside of office hours.

The plan is to eventually leave the W2 job once the business grows to enough profitability.I understand that CapEx, startup costs and other expenses can pass through to my ordinary salaried income.I'm not sure about depreciation, however - there are large amounts of this in a RE business as you folks probably know, and it'd be good to be able to offset my salaried wages with this, if possible.Would we be able to pass through depreciation deductions to our ordinary income as well?

This sounds like an issue with poor insulation between units, thereby allowing ordinary sounds to amplify.

This would allow you to maximize tax deductions at ordinary tax rates.

Derek, don't forget the gain will be taxed at ordinary income tax rates and self employment tax.

Does the total suspended PAL offset my ordinary income, and then asset sale capital gain get taxed at my capital gain income bracket rate - or does the suspended PAL offset the capital gains first, and the left over PAL offset ordinary income?