Incorporating - Posted by Mohito

Real Estate Investing
1

Posted by jeff on July 16, 2002 at 16:10:33:

you need to find a man by the name of John Hyre (JHyre) in the legal forum, i think that is where he hangs out. he is the tax guru among us. im sure hes got your answers.

2

Incorporating - Posted by Mohito

Posted by Mohito on July 16, 2002 at 14:34:58:

We will have a rental loss this year that we will not be able to use to offset our earned income because our combined earned income will be greater than 150,000.

(my understanding is that you can offset up to 25,000 loss against earned income if you are Active and your combine income is below 150,000)

  1. Can this loss can be carried over to future years?

  2. I have been looking at incorporating to get better benefits of this loss. My parent also have another cash positive rental property - can we combine both properties into our new “corporation” and use losses of one to offset gains from the other? Which coporations would be best?

Thanks

3

Re: Incorporating - Posted by Eric in FL

Posted by Eric in FL on July 16, 2002 at 18:14:09:

You can offset all your expenses if you are classified as a real estate professional. The hourly requirements I am not sure of but my wife is set up as a professional and she is a stay at home mom. I think you understand where I am coming from. If your wife makes less than 50k, which is really 25k in your tax bracket, she should leave her job. Or vice versa it should be you. When you enter that wage earning bracket you are simply putting more gas into Air Force One. You will be amazed at your tax burden after analyzing it.

Good Luck,
Eric