presented by
Help! >$150k Income vs. Suspended Loss vs. REI Tax Breaks
My wife and I have just purchased our first investment property and are searching help on various strategies we can take advantage of. We've not yet decided whether the property will be a fix-and-flip or a buy-and-hold. However, our plan in the next month or so is to form an LLC to continue investing in RE. We're hiring a GC who will do the work at cost, and in turn he will take 50% of the profit. To me, this is a business and I'm actively involved in building the business. My wife and I collectively gross over $150k/year, and we were recently informed by our CPA that due to our income we could not take advantage of any real estate tax write-off's as a result of Suspended Loss. Is this true? Would Suspended Loss still be a factor if the property were a flip instead of a rental? What other factors should we be considering since we will form an LLC for REI?