Hey guys, I look at the benefit of the LLC as keeping a loss from one from spilling over into other LLCs or your personal finances.

He claimed that they had properties ready to sell to me and the 10K was to recover their costs on work that had already been done to prepare the property for me. 

Do capital gains offset passive losses that the investor has, so someone really isn't paying a high capital gains tax as they thought? 

I see the benefits in it, but not at my current position, I have lots of losses currently and do not need that benefit right now.

Push forward with your eviction and cut your losses. 

Talk to an accountant prior to doing the cost segregation study.You want to discuss whether it will be beneficial or not.In general real estate is considered passive which means that it can't be used to offset other forms of income such as wages, interest, dividends, capital gains, etc.However, there are some exceptions where the real estate loss can offset these types of income.best of luck.

There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.

The biggest win or loss you are going to have on your STR business will come at the purchase. 

This deduction is related to the loss on disposal of certain assets in your building such as replacing or removing existing components of the building.Cost segregation studies can be a very beneficial tool for real estate investors.

You now have a $1,000 loss and can use that in your taxes.