Posted by Mark (SDCA) on March 30, 2000 at 13:48:08:
Well… if you want to use this, I would recommend you document every hour you spend in RE. Just jot it down. ie 2 hours driving around neightborhoods, 1 hour reading classified ads, 3 hours showing house to T/B etc. And date everything. That is what I will do if I ever bump up against the ceiling.
Mark
Schedule E and Passive Income Rule - Posted by dave
Posted by dave on March 30, 2000 at 08:35:03:
I recently heard from my accountant that the paper losses I had hoped for with my rental property will be limited. If your Adjusted Gross Income (AGI) is over $100k, the amount you can show as a loss on the schedule E is phased out. The loss becomes ZERO at a AGI of $150k.
It appears a LLC flows through to the individuals, not sure on a Sub S or C?..
I am sure this topic has been covered many times before on this bulletin board. Please point me in the direction of an author or previous post…
Re: Schedule E and Passive Income Rule - Posted by Mark (SDCA)
Posted by Mark (SDCA) on March 30, 2000 at 10:26:12:
There IS an exception to this. If you put in at least 750 hours per year in real estate then you are considered a real estate professional and the loss is NOT limited.
Mark
Re: Schedule E and Passive Income Rule - Posted by The Baze
Posted by The Baze on March 30, 2000 at 09:34:38:
Dave,
Your accountant is right. When your MODIFIED AGI reaches $100,000, the $25,000 special loss allowance begins to phase out, and is completely phased out at modified AGI of $150,000 for MFJ.
S-corps are flow through entities, just as LLCs are. C-corps are taxpaying entities. Hope this helps.
Tom Bazley
Re: Schedule E and Passive Income Rule … OK, but… - Posted by soapymac
Posted by soapymac on March 30, 2000 at 10:49:38:
knowing how picketty our loving “Uncle” partner is, how did he define that 750 hours? Do we have to show that as a “job” and validate our hours by a paycheck? What method is “acceptable” to show the amount of time we put in?
Re: Schedule E and Passive Income Rule - Posted by dave
Posted by dave on March 30, 2000 at 12:11:13:
Tom,
Thanks for the confirmation. When you say that S-corps and LLCs are flow throughs how is this loss handled at the individual level? My understanding is that you can not use a S-corp for real estate alone… but w/a LLC can you have a loss flow back to your 1040?
thanks-
dave.