Thus, in the year of disposition, losses allocable to the passive activity may offset portfolio and other investment income or may become part of a net operating loss. 

I would also allocate a certain amount of money toward educating myself on stock market analysis from a reputable source (i.e., not from a seminar series).  

You, as a new business owner, will want to consider the differences as you choose the form for your enterprise.An LLC beats an S corporation for ease of operation and administration.An LLC beats an S corporation for flexibility in allocating percentage of profits or losses among the owners.An S corporation beats a typical LLC for flexibility in paying its earnings to owners as either earned income in the form of salaries and wages or as distributions.An S corporation beats an LLC for various tax planning purposes.Before choosing one of these options--or a combination of the two--determine the features that are most important to you and your business.LLC Offers Limited Liability and FlexibilityAn LLC is a business structure authorized by state statutes.

So it is prudent to budget for up to 50% of rental income to be allocated to property expenses.

Allocating to the K-1 will bypass the Schedule-A limitations.Hope that helps.John Woodrich, CPA

I have intentionally allocated more of my personal capital over time to real estate from other asset classes that I felt were more unpredictable and susceptible to the items mentioned here.  

However, they're unconsciously just buying things and allocating their resources (money and time spent making money) to items that are really draining their net worth.  

We used to always have this debate in our household about how to allocate the money that was sitting in 1 single pot at the bank.  

And currently, we are committed to allocating our marketing budget to more permanent adds. 

I am pivoting with the market and re-allocating capital from value plays to more cash flow plays because the value plays are not penciling out as well.