[surveyor]

numbers

You know, a lot of times, we piggs seem to devolve our arguments to this:

[img_assist|nid=7631|title=Typical Piggington’s Argument to Neophytes|desc=|link=node|align=left|width=466|height=145]

Hahahaha.

[surveyor]

numbers

You know, a lot of times, we piggs seem to devolve our arguments to this:

[img_assist|nid=7631|title=Typical Piggington’s Argument to Neophytes|desc=|link=node|align=left|width=466|height=145]

Hahahaha.

[surveyor]

numbers

You know, a lot of times, we piggs seem to devolve our arguments to this:

[img_assist|nid=7631|title=Typical Piggington’s Argument to Neophytes|desc=|link=node|align=left|width=466|height=145]

Hahahaha.

[surveyor]

numbers

You know, a lot of times, we piggs seem to devolve our arguments to this:

[img_assist|nid=7631|title=Typical Piggington’s Argument to Neophytes|desc=|link=node|align=left|width=466|height=145]

Hahahaha.

[surveyor]

tax deductions

Don’t forget the biggest tax deduction of all: depreciation of the property itself (the value of the property minus the cost of the land).

There are also chattel depreciation, which allows you to depreciate items such as carpet/floors, appliances.

There are other tax deductions you can access once you start running a real estate business (which you are essentially doing when you are renting out properties) such as the home office tax deduction.

Note that when (not if) you have a rental loss, you get to suck it down, you can’t apply it against your regular income.

I don’t think that’s correct. Here’s the IRS’s take on it:

“Losses From Rental Real Estate Activities

If you or your spouse actively participated in a passive rental real estate activity, you can deduct up to $25,000 of loss from the activity from your nonpassive income. This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities. Similarly, you can offset credits from the activity against the tax on up to $25,000 of nonpassive income after taking into account any losses allowed under this exception.

If you are married, filing a separate return, and lived apart from your spouse for the entire tax year, your special allowance cannot be more than $12,500. If you lived with your spouse at any time during the year and are filing a separate return, you cannot use the special allowance to reduce your nonpassive income or tax on nonpassive income.

The maximum amount of the special allowance is reduced if your modified adjusted gross income is more than $100,000 ($50,000 if married filing separately).

Example.

Jane is single and has $40,000 in wages, $2,000 of passive income from a limited partnership, and $3,500 of passive loss from a rental real estate activity in which she actively participated. $2,000 of Jane’s $3,500 loss offsets her passive income. The remaining $1,500 loss can be deducted from her $40,000 wages.
Active participation. You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental property and you made management decisions in a significant and bona fide sense. Management decisions include approving new tenants, deciding on rental terms, approving expenditures, and similar decisions.

Example.

Mike is single and had the following income and losses during the tax year:
Salary $42,300
Dividends 300
Interest 1,400
Rental loss (4,000)

The rental loss resulted from the rental of a house Mike owned. Mike had advertised and rented the house to the current tenant himself. He also collected the rents, which usually came by mail. All repairs were either done or contracted out by Mike.

Even though the rental loss is a loss from a passive activity, because Mike actively participated in the rental property management, he can use the entire $4,000 loss to offset his other income.”

As long as you qualify, you should be able to deduct rental losses against your normal/active income.

In any case, anyone who is going into the rental business should really do more research. I recommend the book “Real Estate Investing Loopholes” (http://www.amazon.com/Insiders-Guide-Estate-Investing-Loopholes/dp/0471711799/ref=sr_1_6?ie=UTF8&s=books&qid=1211235006&sr=8-6) and Lisa Vander’s “The Real Guide to Making Millions in Real Estate” (http://www.amazon.com/Guide-Making-Millions-Through-Estate/dp/1932531785/ref=sr_1_1?ie=UTF8&s=books&qid=1211235053&sr=1-1).

[surveyor]

tax deductions

Don’t forget the biggest tax deduction of all: depreciation of the property itself (the value of the property minus the cost of the land).

There are also chattel depreciation, which allows you to depreciate items such as carpet/floors, appliances.

There are other tax deductions you can access once you start running a real estate business (which you are essentially doing when you are renting out properties) such as the home office tax deduction.

Note that when (not if) you have a rental loss, you get to suck it down, you can’t apply it against your regular income.

I don’t think that’s correct. Here’s the IRS’s take on it:

“Losses From Rental Real Estate Activities

If you or your spouse actively participated in a passive rental real estate activity, you can deduct up to $25,000 of loss from the activity from your nonpassive income. This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities. Similarly, you can offset credits from the activity against the tax on up to $25,000 of nonpassive income after taking into account any losses allowed under this exception.

If you are married, filing a separate return, and lived apart from your spouse for the entire tax year, your special allowance cannot be more than $12,500. If you lived with your spouse at any time during the year and are filing a separate return, you cannot use the special allowance to reduce your nonpassive income or tax on nonpassive income.

The maximum amount of the special allowance is reduced if your modified adjusted gross income is more than $100,000 ($50,000 if married filing separately).

Example.

Jane is single and has $40,000 in wages, $2,000 of passive income from a limited partnership, and $3,500 of passive loss from a rental real estate activity in which she actively participated. $2,000 of Jane’s $3,500 loss offsets her passive income. The remaining $1,500 loss can be deducted from her $40,000 wages.
Active participation. You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental property and you made management decisions in a significant and bona fide sense. Management decisions include approving new tenants, deciding on rental terms, approving expenditures, and similar decisions.

Example.

Mike is single and had the following income and losses during the tax year:
Salary $42,300
Dividends 300
Interest 1,400
Rental loss (4,000)

The rental loss resulted from the rental of a house Mike owned. Mike had advertised and rented the house to the current tenant himself. He also collected the rents, which usually came by mail. All repairs were either done or contracted out by Mike.

Even though the rental loss is a loss from a passive activity, because Mike actively participated in the rental property management, he can use the entire $4,000 loss to offset his other income.”

As long as you qualify, you should be able to deduct rental losses against your normal/active income.

In any case, anyone who is going into the rental business should really do more research. I recommend the book “Real Estate Investing Loopholes” (http://www.amazon.com/Insiders-Guide-Estate-Investing-Loopholes/dp/0471711799/ref=sr_1_6?ie=UTF8&s=books&qid=1211235006&sr=8-6) and Lisa Vander’s “The Real Guide to Making Millions in Real Estate” (http://www.amazon.com/Guide-Making-Millions-Through-Estate/dp/1932531785/ref=sr_1_1?ie=UTF8&s=books&qid=1211235053&sr=1-1).

[surveyor]

tax deductions

Don’t forget the biggest tax deduction of all: depreciation of the property itself (the value of the property minus the cost of the land).

There are also chattel depreciation, which allows you to depreciate items such as carpet/floors, appliances.

There are other tax deductions you can access once you start running a real estate business (which you are essentially doing when you are renting out properties) such as the home office tax deduction.

Note that when (not if) you have a rental loss, you get to suck it down, you can’t apply it against your regular income.

I don’t think that’s correct. Here’s the IRS’s take on it:

“Losses From Rental Real Estate Activities

If you or your spouse actively participated in a passive rental real estate activity, you can deduct up to $25,000 of loss from the activity from your nonpassive income. This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities. Similarly, you can offset credits from the activity against the tax on up to $25,000 of nonpassive income after taking into account any losses allowed under this exception.

If you are married, filing a separate return, and lived apart from your spouse for the entire tax year, your special allowance cannot be more than $12,500. If you lived with your spouse at any time during the year and are filing a separate return, you cannot use the special allowance to reduce your nonpassive income or tax on nonpassive income.

The maximum amount of the special allowance is reduced if your modified adjusted gross income is more than $100,000 ($50,000 if married filing separately).

Example.

Jane is single and has $40,000 in wages, $2,000 of passive income from a limited partnership, and $3,500 of passive loss from a rental real estate activity in which she actively participated. $2,000 of Jane’s $3,500 loss offsets her passive income. The remaining $1,500 loss can be deducted from her $40,000 wages.
Active participation. You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental property and you made management decisions in a significant and bona fide sense. Management decisions include approving new tenants, deciding on rental terms, approving expenditures, and similar decisions.

Example.

Mike is single and had the following income and losses during the tax year:
Salary $42,300
Dividends 300
Interest 1,400
Rental loss (4,000)

The rental loss resulted from the rental of a house Mike owned. Mike had advertised and rented the house to the current tenant himself. He also collected the rents, which usually came by mail. All repairs were either done or contracted out by Mike.

Even though the rental loss is a loss from a passive activity, because Mike actively participated in the rental property management, he can use the entire $4,000 loss to offset his other income.”

As long as you qualify, you should be able to deduct rental losses against your normal/active income.

In any case, anyone who is going into the rental business should really do more research. I recommend the book “Real Estate Investing Loopholes” (http://www.amazon.com/Insiders-Guide-Estate-Investing-Loopholes/dp/0471711799/ref=sr_1_6?ie=UTF8&s=books&qid=1211235006&sr=8-6) and Lisa Vander’s “The Real Guide to Making Millions in Real Estate” (http://www.amazon.com/Guide-Making-Millions-Through-Estate/dp/1932531785/ref=sr_1_1?ie=UTF8&s=books&qid=1211235053&sr=1-1).

[surveyor]

tax deductions

Don’t forget the biggest tax deduction of all: depreciation of the property itself (the value of the property minus the cost of the land).

There are also chattel depreciation, which allows you to depreciate items such as carpet/floors, appliances.

There are other tax deductions you can access once you start running a real estate business (which you are essentially doing when you are renting out properties) such as the home office tax deduction.

Note that when (not if) you have a rental loss, you get to suck it down, you can’t apply it against your regular income.

I don’t think that’s correct. Here’s the IRS’s take on it:

“Losses From Rental Real Estate Activities

If you or your spouse actively participated in a passive rental real estate activity, you can deduct up to $25,000 of loss from the activity from your nonpassive income. This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities. Similarly, you can offset credits from the activity against the tax on up to $25,000 of nonpassive income after taking into account any losses allowed under this exception.

If you are married, filing a separate return, and lived apart from your spouse for the entire tax year, your special allowance cannot be more than $12,500. If you lived with your spouse at any time during the year and are filing a separate return, you cannot use the special allowance to reduce your nonpassive income or tax on nonpassive income.

The maximum amount of the special allowance is reduced if your modified adjusted gross income is more than $100,000 ($50,000 if married filing separately).

Example.

Jane is single and has $40,000 in wages, $2,000 of passive income from a limited partnership, and $3,500 of passive loss from a rental real estate activity in which she actively participated. $2,000 of Jane’s $3,500 loss offsets her passive income. The remaining $1,500 loss can be deducted from her $40,000 wages.
Active participation. You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental property and you made management decisions in a significant and bona fide sense. Management decisions include approving new tenants, deciding on rental terms, approving expenditures, and similar decisions.

Example.

Mike is single and had the following income and losses during the tax year:
Salary $42,300
Dividends 300
Interest 1,400
Rental loss (4,000)

The rental loss resulted from the rental of a house Mike owned. Mike had advertised and rented the house to the current tenant himself. He also collected the rents, which usually came by mail. All repairs were either done or contracted out by Mike.

Even though the rental loss is a loss from a passive activity, because Mike actively participated in the rental property management, he can use the entire $4,000 loss to offset his other income.”

As long as you qualify, you should be able to deduct rental losses against your normal/active income.

In any case, anyone who is going into the rental business should really do more research. I recommend the book “Real Estate Investing Loopholes” (http://www.amazon.com/Insiders-Guide-Estate-Investing-Loopholes/dp/0471711799/ref=sr_1_6?ie=UTF8&s=books&qid=1211235006&sr=8-6) and Lisa Vander’s “The Real Guide to Making Millions in Real Estate” (http://www.amazon.com/Guide-Making-Millions-Through-Estate/dp/1932531785/ref=sr_1_1?ie=UTF8&s=books&qid=1211235053&sr=1-1).

[surveyor]

tax deductions

Don’t forget the biggest tax deduction of all: depreciation of the property itself (the value of the property minus the cost of the land).

There are also chattel depreciation, which allows you to depreciate items such as carpet/floors, appliances.

There are other tax deductions you can access once you start running a real estate business (which you are essentially doing when you are renting out properties) such as the home office tax deduction.

Note that when (not if) you have a rental loss, you get to suck it down, you can’t apply it against your regular income.

I don’t think that’s correct. Here’s the IRS’s take on it:

“Losses From Rental Real Estate Activities

If you or your spouse actively participated in a passive rental real estate activity, you can deduct up to $25,000 of loss from the activity from your nonpassive income. This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities. Similarly, you can offset credits from the activity against the tax on up to $25,000 of nonpassive income after taking into account any losses allowed under this exception.

If you are married, filing a separate return, and lived apart from your spouse for the entire tax year, your special allowance cannot be more than $12,500. If you lived with your spouse at any time during the year and are filing a separate return, you cannot use the special allowance to reduce your nonpassive income or tax on nonpassive income.

The maximum amount of the special allowance is reduced if your modified adjusted gross income is more than $100,000 ($50,000 if married filing separately).

Example.

Jane is single and has $40,000 in wages, $2,000 of passive income from a limited partnership, and $3,500 of passive loss from a rental real estate activity in which she actively participated. $2,000 of Jane’s $3,500 loss offsets her passive income. The remaining $1,500 loss can be deducted from her $40,000 wages.
Active participation. You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental property and you made management decisions in a significant and bona fide sense. Management decisions include approving new tenants, deciding on rental terms, approving expenditures, and similar decisions.

Example.

Mike is single and had the following income and losses during the tax year:
Salary $42,300
Dividends 300
Interest 1,400
Rental loss (4,000)

The rental loss resulted from the rental of a house Mike owned. Mike had advertised and rented the house to the current tenant himself. He also collected the rents, which usually came by mail. All repairs were either done or contracted out by Mike.

Even though the rental loss is a loss from a passive activity, because Mike actively participated in the rental property management, he can use the entire $4,000 loss to offset his other income.”

As long as you qualify, you should be able to deduct rental losses against your normal/active income.

In any case, anyone who is going into the rental business should really do more research. I recommend the book “Real Estate Investing Loopholes” (http://www.amazon.com/Insiders-Guide-Estate-Investing-Loopholes/dp/0471711799/ref=sr_1_6?ie=UTF8&s=books&qid=1211235006&sr=8-6) and Lisa Vander’s “The Real Guide to Making Millions in Real Estate” (http://www.amazon.com/Guide-Making-Millions-Through-Estate/dp/1932531785/ref=sr_1_1?ie=UTF8&s=books&qid=1211235053&sr=1-1).

[surveyor]

$$$$$$$$$

I haven’t seen anybody else comment on this, but it appears if you got shorted on your “tax rebate”, don’t worry about it, the IRS will be sending you the rest of it in July.

Here are the details: http://www.msnbc.msn.com/id/24655421/

We received our check last week, minus the $300/kid credit (which my wife and I wondered about but were too busy to really care about at the time).

I would probably have felt a lot better about this “rebate” if it weren’t for the fact that I was going to get it back anyways, due to my tax strategies…

Anyways, I have dutifully donated the check to a worthy cause (no, not a plasma tv!).

[surveyor]

$$$$$$$$$

I haven’t seen anybody else comment on this, but it appears if you got shorted on your “tax rebate”, don’t worry about it, the IRS will be sending you the rest of it in July.

Here are the details: http://www.msnbc.msn.com/id/24655421/

We received our check last week, minus the $300/kid credit (which my wife and I wondered about but were too busy to really care about at the time).

I would probably have felt a lot better about this “rebate” if it weren’t for the fact that I was going to get it back anyways, due to my tax strategies…

Anyways, I have dutifully donated the check to a worthy cause (no, not a plasma tv!).

[surveyor]

$$$$$$$$$

I haven’t seen anybody else comment on this, but it appears if you got shorted on your “tax rebate”, don’t worry about it, the IRS will be sending you the rest of it in July.

Here are the details: http://www.msnbc.msn.com/id/24655421/

We received our check last week, minus the $300/kid credit (which my wife and I wondered about but were too busy to really care about at the time).

I would probably have felt a lot better about this “rebate” if it weren’t for the fact that I was going to get it back anyways, due to my tax strategies…

Anyways, I have dutifully donated the check to a worthy cause (no, not a plasma tv!).

[surveyor]

$$$$$$$$$

I haven’t seen anybody else comment on this, but it appears if you got shorted on your “tax rebate”, don’t worry about it, the IRS will be sending you the rest of it in July.

Here are the details: http://www.msnbc.msn.com/id/24655421/

We received our check last week, minus the $300/kid credit (which my wife and I wondered about but were too busy to really care about at the time).

I would probably have felt a lot better about this “rebate” if it weren’t for the fact that I was going to get it back anyways, due to my tax strategies…

Anyways, I have dutifully donated the check to a worthy cause (no, not a plasma tv!).

[surveyor]

$$$$$$$$$

I haven’t seen anybody else comment on this, but it appears if you got shorted on your “tax rebate”, don’t worry about it, the IRS will be sending you the rest of it in July.

Here are the details: http://www.msnbc.msn.com/id/24655421/

We received our check last week, minus the $300/kid credit (which my wife and I wondered about but were too busy to really care about at the time).

I would probably have felt a lot better about this “rebate” if it weren’t for the fact that I was going to get it back anyways, due to my tax strategies…

Anyways, I have dutifully donated the check to a worthy cause (no, not a plasma tv!).

[surveyor]

starts

The stuff I’m seeing is not in San Diego county.

There are a couple of stalled subdivisions in northeast Escondido that I am watching. However, the owner is being very stubborn on price. He expects bubble prices.

There are other possible subdivisions but they are probably way too north for you to consider. The County is trying to build a road from the 15 to Valley Center, and someone will probably start looking to develop there. However, it will take 10 years for it to be finished, even if they started their application today.

[Author]

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