On this one, I'd say that it's fairly unlikely that investors buying strong cashflowing property would have taxable losses, even factoring in the depreciation.So there can be value in being a RE Professional, but it's for the minority of very high earners, and those with low-yielding properties generating tax losses.I think all of the other tax benefits of being a RE investor are available to all landlords.I do think having a dedicated spouse might make a more compelling case to the IRS for certain deductions, such as the home-office deduction.

So this is what I came up with: Purchase price/ Value $390,000 Down payment $13,600 Loan amount $376,400$376,400 for 30yrs @ 3.5 apr P&I $1690Rents: $40320 with 5% vacant rate =38304Real Estate Taxes$3,600 Insurance $1500 Managementself manageSnow/lawnselfUtilities1200Repair/maint 2200 (new construction )Gross operating income $38,304 Less: operating expenses $8,600 Net operating income $29,704 Less: annual debt service $19,657 Cash flow before tax $10,047Net operating income $29,704 Less: interest $12,120 Less: depreciation (~4%)$14,182 Taxable income $3,402 * tax bracket (fed)33%Tax payment / (savings)$1,123Cap 7.62Cash on cash 73.87%Is this right?

I believe he is referring to UDFI: Unrelated Debt Financed Income.UBIT is Unrelated Business Taxable Income.UDFI occurs from financing.UBIT occurs from active business activies.Examples: flipping, wholesaling, etc.

FLIP and I am sure different state and federal laws apply.

And I gotta say, I'm impressed of these huge corporations such as Google, Apple, Verizon, etc. were able to avoid paying federal income tax.

New federal regulations will require a 90% or higher, which costs a lot more money.

I finally found an attorney in DC working for the federal government, who told me that he was in charge of interpreting that part of the law.

Further, the attorney really needs an in depth knowledge of federal consumer lending law as well as just state regulatory law.

S-corporation and partnership: You can utilize a simple distribution, nothing becomes taxable until you withdraw more than you have contributed to the business.In a C-corporation through the use of Nontaxable Distributions(I.E.

In both cases it was a balanfe sheet recession in the private sector, this required the federal government of each country to fill the void or watch the economy rapidly decline as the private sector could not sustain itself.