BRRRR tax benefits but trouble with mortgage financing
I used to pay through the nose for income tax on my internet retail business - lots of revenue and really only COGS to offset it the income. Fast forward 9 years, I have a 30+ rental portfolio that used BRRRR on so big tax expenses. For a few years I was never able to apply the real estate losses to my internet business so they were "suspended" until I sold the property. Since then my wife got her real estate licence and is deemed a "real esate professional" for IRS rules. So we can now take those losses and apply them to the internet business and her real estate commissions. You combine this with large IRA and HSA and health care premiums and my tax payment is a fraction of what it once was.
This is great for tax but now we are ready to buy a new home and even though we have strong cash flow, excellent reserves/credit - tax returns are not showing the profit.
Anyone else have this issue?