Showing gains or losses at tax time?
Just completed my 2nd deal, both of which were reno's and now rentals and currently working on my 3rd. My wife and I both have strong W-2 incomes and our first 2 deals we paid for with cash under our names. We've since formed an LLC and will be financing and purchasing properties under said LLC moving forward. We want to utilize the BRRRR strategy with a commercial loan moving forward. I also own a small seasonal business that can either show a minimal financial gain for 2017(about 35K), or a loss. Showing a loss would benefit us significantly due to being in a high tax bracket.
Question: Since we will now be applying for commercial loans, should we bite the bullet and show that our other side hustle was profitable this year to increase the chances of becoming "bankable" from a commercial perspective? Or do we show the loss to get the significant tax benefit? **I am meeting with my CPA in a few weeks, just interested in hearing what others may have done. Thanks!