@Travis Elliott ,That income can only be used to offset the income from that building due to the fact that it is a part of your principal business.Passive income and Earned income have the sale rates. now if you business is a sole proprietorship it will be taxed subject to SE tax; however, otherwise it is Just ordinary income rates.The category of passive only affects the fact that losses can be limited.

But it would show up as ordinary income for you.No, you can't just make up some number and pretend you spent money.

It’s a community of people that believe in “using ordinary garages to live extraordinary lives.”

And that means ordinary income tax and in your case probably self employment tax and the ACA 3.8% surcharge. 

If not I recommend getting one   The submit offer and proof you can buy it isn’t out of the ordinary.  

So what is to push rents up, besides ordinary inflationary increases?

If you held it under a year and you're not a dealer, then it would be a short term capital gain, and taxed at your ordinary tax rate.

If your S Corp profit was $30k after payroll and your wages were $5k, you will be paying income tax at your ordinary rates on $35k (even if you only took $20k of distributions out of the S Corp).The difference between wages and profit is self-employment tax.

There are multiple ways to skin a cat…I know, kind of an odd headline for a BP post on an ordinary Saturday morning LOL, but I think it works alright!

Finally, I imagine certain investors (either through syndications or active investments in real estate) amass a lot of passive losses which cannot be used to offset ordinary income.