On second thought, I guess that if you were deducting losses against ordinary income that would be an advantage -- IF the losses were only the result the RE depreciation and therefore only a loss on paper (since in reality, properties don't become worthless after 27.5 years - or whatever the depreciation period is - in fact they appreciate).

. - How It Works - If you are active in your rental real estate activities you may be able to deduct up to $25,000 of your rental losses against other ordinary income.

Home has a small covered stone patio, maybe 10x10, and a very small area with some small bushes, that's about it - very little open area.Most homes in the subdivision have larger yards, not huge by any means, but enough room for kids to play.

:-Site Prep (grading/execavation, staking, etc):-Foundation:-All Building Materials (w/ Labor) including the garage: fixtures, framing, plumbing/electric, kitch/bath:-HVAC:-Landscaping and Irrigation/sprinklers:-Flatwork (walkways. driveway, patio, etc): -All Building Permits:-All Developer Fees (City Impact, school, library, fire, parks, water/sewer access rights/fees, etc, etc.)

The only one that may seem to apply would be the "ordinary course" exception, Section 547(c)(2).

To add to what Jon shared about the mess we call our tax system, short term capital gains are taxed as ordinary income, which means its at your normal tax bracket.If you resell a property in less than a year, the gain (which pretty much requires an accountant to figure out) is taxed just like if you were working a J-O-B.

Account Closed What would be the "receipt" of the transaction be if it was just an ordinary interest payoff?

Sell the other and pay ordinary income taxes to provide income and seed for the next build.2.

The bank is going to look at your credit and require formal letters of anything that looks out of the ordinary.

As I am sure you know, if she can be classified as a real estate professional, all real estate losses can be used to off-set your combined ordinary income assuming you file jointly.