Strategies for Home Ownership as a Real Estate Professional - Pay Taxes or Take Write Offs
I have been in a good/bad dilema for some time based on my success as a real estate professional. Since we are growing and taking on new projects, my write offs have steadly increased or at least kept pace with my income to offset almost all income.
I am at a point where I want to buy a house and after looking at CFD's, private placement etc....I am exhausted and realize if I simply didn't take write offs for two years I could afford a very nice home with excellent terms.
I plan on talking to my accountants in detail about this, but has anyone simply not taken their write offs for 2 years to maximize their income and than use the 2 years back (Real Estate Professional) tax option to regain what they spent in taxes 2 years prior? Either that or ammend the return after you close on the home....which I could imagine might be illegal, but maybe not.
I am able to still do 2011 taxes and 2012 tax time is approaching quickly so I trying to wheigh the pros and cons of any options.
I welcome any online or offline e-mails on this subject since it has been a major hurdle for 3 plus years and I want to take advantage of fantastic rates and lower home prices in 2013.