Quote from @Jose Remor: Hi all, I'm new and found the bigger pockets after reading "How to Invest in real estate" book from Brandon and Josh.

Non-passive losses can offset non-passive income (like your W2).

My partner however is NOT a real estate professional and won’t be able to capitalize on the deductions as much as I will be able to due to their share of the “loss” being a passive loss.

Short sales are where the bank would realize a lesser loss settling than they would completing a foreclosure.

@Meghan BegueWelcome to Bigger Pockets.

So in your example, buying a trackhoe might grow your business or create greater profit by eliminating some outside costs, or letting you take on bigger projects, or speeding up existing projects, etc (just an example).

Bigger issue is that they look terrible - badly misshapen especially.

He is also a frequent poster here on bigger pockets, especially in the note investing sectionHe happens to also share the same name as me - how ironic.

Welcome to Bigger Pockets Priya!

@Marie PaulWelcome to Bigger Pockets.