However, this is a difficult qualification to meet, especially if you have a full-time job outside of real estate.Don’t worry if you aren’t able to qualify for REPS status, because there is another strategy that is referred to as a “loophole”, which is the STR strategy.Per Section 1.469-1T(e)(3)(ii)(A): there are six exceptions where your rental property income is not automatically considered to be “rental activity” and thus may unlock the door for being able to offset these losses against your active income.The average customer use is seven days or less.The average customer use is 30 days or less and significant personal services were provided (for example, daily housekeeping).Extraordinary personal services are provided, regardless of the duration of customer use.The rental is incidental to a non-rental activity.The property is available during defined business hours for non-exclusive use by various customers.The property is used in an activity conducted by an S Corporation, partnership or joint venture in which the taxpayer holds an interest.If your property qualifies by meeting one of the exceptions above, the next step is to demonstrate material participation in the rental activity.

And half of American renter households spend at least 30% of their income on housing, which is up sharply since 2000, according to Harvard University’s Joint Center for Housing Studies.

My understanding is that excess business loss limits in 2022 are $270k for single filers and $540k for married filing jointly.

You can find templates for joint venture agreements on BiggerPockets or other real estate investment websites.Next, consider joining local real estate meetups or online groups where you can network with other investors.

Based on your assumption that you and your spouse file jointly, I agree with the others in the comments.

I started wholesaling and learned people like to work with verbal communications and no one had an interest to want to put any type of co wholesale of joint venture agreement together.

@Joseph FennerTo acquire 167 rentals, use creative financing strategies like the BRRRR Method, seller financing, partnerships, joint ventures, HELOC/Equity Loans, portfolio loans, credit cards, and business credit lines.

The real estate investor has advertised on this site, and continues to advertise joint ventures and private money deals in multiple states.

Joint Filing Considerations.If you are married and file a joint tax return, either spouse can qualify as a real estate professional.

Purchase price: $550,000 Cash invested: $1,000 Sale price: $565,000 Joint ventured with another wholesaler in Northern Utah to get this deal done.