We’re in the position of my spouse having a high w2 income and we’re contemplating having me be a real estate professional to shield his w2 income. We own 3 rental properties and will add another this year, I am materially involved in these, so I’d just have to solely focus on those and drop my 1099 consulting work and full time w2. Has anybody had experience with this and successfully shielded a w2 income?

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Posting as :
works at
You are currently posting as works at

Sounds like you need to consult with the your tax advisor.

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I haven’t done it but it does seem to be a viable strategy since REP status with cost segregation studies would give you the ability to deduct rental losses against W2 income. The white coat investor group on Facebook discusses this a ton.

750 hours a year of material participation breaks down to around 15 hours a week. If you just have long term rentals, that seems pretty hard to do.

The strategy works better with short term rentals as you only need 100 hours and less than 7 days average stay for any new property you acquire, or if you’re trying to take bonus depreciation on the other properties, you at least get more hours by interacting with guests, cleaning the property, etc…

It’s much more common to use REPS if you have value add multi-family properties, and/or are raising private money to grow your real estate empire as those take up a lot more hours

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Any suggestion is highly appreciated. Thank you.

Getting my first credit card but my credit score is around 650... what would be best for me? I keep getting rejected. Does it matter who I get a card with?

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Hello all, i have. A question regarding compensation for a lateral move. I just received a job offer for an UA position from a competing cyber insurance carrier for $70,000 + bonuses. This job will be based out of San Francisco. I currently make $30/hour for the same role in Chicago, after OT it’s about $60,000. Do you think it would be wise to accept the offer? Thoughts in general?

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How much have your saved in your career?
How old are you?
What’s your current role? and
What country do your work in?

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Hi fishes,

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#Amazon #Microsoft

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I don’t know what’s going so wrong.

I have applied to 42 jobs and received 20 rejections, with 0 opportunities to even interview.

My resume is from WSO template, and I used suggested wording from various popular resume websites.

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Hi guys,

Do you have any opening for sql and power bi skillset

Hi,
Hope u all are doing well!
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How many think marketcap of cryptos will reach 700 billion or more before year end?

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Can we pay rent to our parent?
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Please help as this is my first time coming under tax slab

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In case anyone is looking to get into product management, I came across this image which shows some books you could read to get into the role.

P.S: I saw this on Linkedin posted by Dr Milan Milanovic. So all credits to him!

Post Photo
likehelpfulsmart

Hi All,

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What percentage of your income do you save, invest and spend?

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How did you get started with your personal investing in stocks? I am 26, F, have some money in savings, 401k, stocks and just started my own business albeit small. I’m extremely interested in real estate investing have been reading and listening to podcasts. Any advice?

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What's the best city in UK to buy a buy to let property, with best returns?

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I would like to learn more about development and real estate. Can anyone recommend any books or courses that you think are informative. Eventually I would like to own a few apartment buildings, but I know there is a lot I need to learn 1st. Any advice appreciated. 

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Has anyone used Loan Cabin to refinance? They seem to have the best rates.

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I am wanting to start investing in real estate in the new year… I’m using this month to read up on it and familiarize myself with it. I am a true beginner and wanted to ask for any tips, tricks, advice, books, videos, magazines, podcasts, etc to start? Please let me know!

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We are renovating a condo and the previous owner had two Crane toilets (not sure how old, but functioning although seals are old according to our contractor). Back outlet flour mount ones are the only options for the building, and one toilet can cost $300-$500.

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What are some of the things that were a MUST when buying your first home and what were some things that you were more flexible with and why? I’m having a discussion with my partner about what we absolutely need and what can be worked on later.

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Has anyone here used New Western to buy real estate deals?

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At what income level should one be comfortable to spend 2400/mo on rent in HCOL? Assuming single, no kids, no debt or major expenses.

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Now that the rents are going higher and housing is not affordable. With wfh option is it good idea to love to ranch with house?

Anyone here invested or opted as primary living place outside of cities?

Cheers

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Is it okay to buy a home worth 660K for a couple earning 325K TC together? The HOA and taxes for this home bring the monthly payment up to ~4.8K which is ~32% of our monthly take home after tax…we’re first time home buyers, any advise is appreciated!

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Any potential flags/benefits for dual agency? My agent and the seller's agent work for the same company.

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Closing on my first home. Advice for anyone with student loans in administrative forbearance per the Cares act: once your offer is accepted have you student loan servicer put your account back in repayment status.

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My fictitious debt to income ratio was too high for them to approve me, and it took seven days for my loan to be officially back in repayment. So just a heads up.

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Got an agent and she was useless for finding good tenants. Got frustrated and finally started finding leads myself and closing on one soon. I have signed a contract with the agent for paying one months rent as fee. How can i fight this or as he has been literally of zero value add? I will ofcourse ask nicely but wanted to see if i have any other options!

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Current Tenant Rent: $1075, Monthly Payment: $400 (with property management), Initial Repairs: $2-5K, Down Payment: $12K

At surface level, do these numbers check out?

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From a financial standpoint in this market, which would be a better approach in Austin -

1. Buy a ~8-850k house that meets most of our ideal criteria (size, schools, interiors etc) to stay long term

2. Buy a ~5-550k house that’s not ideal with the plan of moving into an ideal home in 4-5 years when kid is ready for school.

How easy is it to get a mortgage for the second home?

Household income - 300k

Happy to add more details as needed

Thanks

I share my first property with a family member which is my primary home. If I buy a second property (and keep the first property) and live there, does that second property now qualify as my primary home?

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Having trouble selling my (retired) dad's house. It needs a lot of work, but has great character. What if I buy it myself for a low, low price? Then I would be able to get a FHA 203k loan to do the updates. Rent it out or put it back on the market in the spring.

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If I’m a Real Estate Agent buying my own property, can I negotiate the Buyers Agent commission to be 0% instead of being paid the buyers commission? Essentially converting what would be Income into Cost Savings for tax purposes?

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