“If they (Piedmont Lithium) comes on my property and they find what I think they might find, and I get royalties and everything from it, that’s going to help my son, his family and my granddaughter down the line.”You can reach reporter Gavin Stewart at the Gaston Gazettehttps://www.gastongazette.com/...

Hey Casey,Given that you have a big family and a full time job, have you considered investing in a more passive investment such as an oil and gas mineral rights royalty fund?

The exception is some items that require documentation in itself such as transferring stocks & bonds, royalty, land, car, or boat for proof of ownership.

Rich dad  Vertucci etc.. and those folks money is made selling their training.. they started in the trenchs many times but by the time they get going and get big time.. at the most if they get income from the sale of the assets its more like a royalty payment.. they are not acutally doing anything ..

c) Exceptions The term ''personal holding company'' as defined in subsection (a) does not include - (1) a corporation exempt from tax under subchapter F (sec. 501 and following); (2) a bank as defined in section 581, or a domestic building and loan association within the meaning of section 7701(a)(19); (3) a life insurance company; (4) a surety company; (5) a foreign corporation, (6) a lending or finance company if - (A) 60 percent or more of its ordinary gross income (as defined in section 543(b)(1)) is derived directly from the active and regular conduct of a lending or finance business; (B) the personal holding company income for the taxable year (computed without regard to income described in subsection (d)(3) and income derived directly from the active and regular conduct of a lending or finance business, and computed by including as personal holding company income the entire amount of the gross income from rents, royalties, produced film rents, and compensation for use of corporate property by shareholders) is not more than 20 percent of the ordinary gross income; (C) the sum of the deductions which are directly allocable to the active and regular conduct of its lending or finance business equals or exceeds the sum of - (i) 15 percent of so much of the ordinary gross income derived therefrom as does not exceed $500,000, plus (ii) 5 percent of so much of the ordinary gross income derived therefrom as exceeds $500,000; and (D) the loans to a person who is a shareholder in such company during the taxable year by or for whom 10 percent or more in value of its outstanding stock is owned directly or indirectly (including, in the case of an individual, stock owned by members of his family as defined in section 544(a)(2)), outstanding at any time during such year do not exceed $5,000 in principal amount;"

@Michael BatshonIf you bought rental property in say, Las Vegas, and live in Southern California, there is a good chance you will have a negative amount on your schedule E (rents/royalties).

My thought is that if you only file a Schedule E, then you are landlording as an Investment and earning Rents/Royalties.

We could easily move to the Midwest where its cheaper and live a very comfortable life, just as you could move to Philippines or Vietnam and live like royalty if that's the lifestyle you want.  

Lenders look for this on your Fed tax return, schedule E ( rents/royalty).

Have you considered investing in a gas and mineral rights royalty fund that pays 10-15% annualized CF?