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Anyone on pros and cons of A&M PEPI group?
Hi, please help me getting 11❤ to unlock dm. Thanks!
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Happy Wednesday. It is Wednesday right?
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Are the <3.5% rates gone for good?
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I’ve been considering this for the last few weeks but I’m having a hard time finding a property that will be economically sustainable esp given the high mortgage rates. Do the numbers look appealing where you’re looking?
Absolutely worth it you can save tens of thousands on taxes at tax time (I am saving the equivalent of more than most people’s salaries).
We have an STR in our basement (bought the house specific for this purpose to house hack) and I do all the cleaning for it. The cleaning alone easily adds up to the time needed for RE professional classification. Plus it’s a “side hustle” since I get paid the cleaning fee and it’s no longer an expense.
Not sure how I would make up those hours if I wasn’t materially participating in the cleaning though. But if you can find a duplex, rent out one side as an STR, and actually do the cleaning, furnishing, and admin, then it will work for you.
I’m in a similar boat - tech worker with w2 but it shows hours in my pay docs 42/wk. This year I was on paid parental leave so I can qualify for material participation REP but from my research I should attach a letter explaining the situation. What is your plan for audit? I’d really like to do the same
It depends where you are looking… but it has been difficult to find reasonable property… the prices are still high, interest rates are high, and consumer sentiment is down. Additionally expect another 5-10% drop in demand with economic uncertainty…..
Assuming you are talking about avoiding passive activity loss rules. You still must meet the material participation test. 500 hours (unlikely), only participant (unlikely, subs count), more than anyone else (maybe).
Yep - assume you meet material participation rules.
Was doing STR with 3 properties but recently transitioned to LTR as the cost benefit isn’t there anymore with market saturation. The very little more profit gained over LTR now isn’t worth the hassle.
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Yes, I used it in 2021. I spent a decent amount of money paying accountants for consultations to make sure I did it right.
Glad to try and answer questions
My primary purpose is to get tax efficient strategies in place and i thought that if you sell after 2-3 years the gain along with depreciation recapture could be offset by 1031 exchange. Is that not the case?
What evidence is needed for material participation? Tools / softwares etc?
Realistically speaking - are you able to offset around $250k of W2 on $600k property?