My first strategy in Orba is buying old midsize townhouses with patio from the bank at a very low price so I can sell them quickly for a very reasonable price to investors/neighbours who want to rehab them.

Removed a wall, renovated head to toe, created dual patio spaces and added a bathroom What was the outcome?

What he is saying is that, depending on your participation in the development project, it may not be capital loss but ordinary business loss.

Passive losses cannot be used to directly offset your ordinary income, such as your full-time job income.

Single-family home with large yard, as we learn, now rethinking our strategy.If we sell now, are we considered dealers and taxed on ordinary income plus a self-employment tax ?

Generally, the costs must be ordinary and necessary for your business.

My wife and I placed ads in newspapers, there was no Internet, well there was, just not for us ordinary folks in the early 80's.

It's icy fairly often in CO in the winter, nothing out of the ordinary and our plow guys are pretty good, so no negligence on our end, but she was still awarded some money.

“Box 1” passive investors – Passive investors who receive a K-1 with income in Box 1 “Ordinary business income (loss)” will have QBI.Realtors and other professionals – Definitely a trade or business.

For example, someone could be at 0% capital gains rate gain deferral doesn't seem to indicate you can offset ordinary income.