Income generated by properties is generally shielded through depreciation, providing investors with the long-term benefits of substantial cash flow and very little tax burden.IRS rules allow owners to take annual losses in the form of depreciation to smooth out eventual capital expenditures as buildings age.

It was among a few I had my son read so he would see my lectures were substantiated. 

To reach the goals you’re mentioning of 100k plus a year and beyond will require substantial capital.

During the conversation I mentioned that I also own a single family property and he expressed interest in taking a look at it, which we did.

If you have a property that has appreciated substantially but cash flow has not gone up, you have a lot of equity not making you much money. 

I've seen no data to substantiate your statement!

@Lauren Keen I am not sure one way or the other if you can take the deduction since I don't have all the facts, but I can tell you that the real estate professional designation is not a requirement to take the home office deduction with respect to a rental activity.There is nothing in §280A (the home office section in the tax code) that mentions being a real estate professional is required in order to take the home office deduction for your rental activity.However, in addition to the rules regarding the space itself, there is the requirement that the taxpayer's rental activities rise to the level of a trade or business, which the Treasury has conveniently never defined for us.But it seems that rental activities would rise to the level of a trade or business if the activities are substantial, regular, and continuous.However, there is a case, Curphey v.

I keep notes of this in my rent roll spreadsheet and everything matches up perfectly.I'm not sure how I did it with Airbnb but they substantially under perform Homeaway (Like 100 to 1) so it just trickles in with them.

The fine can be a substantial per day fine in some areas.Check out these links:http://propertymob.com/blog/bandit-sign-basics/http://www.reiclub.com/forums/index.php?

To clarify, Going forward, the HELCO interest is NOT deductible after 2018 unless you use the fund to substantially improve your main or second principle home.