Updated about 18 years ago on . Most recent reply
Passive Loss
Upon last years annual trip to the accountant, our acct. recommended investigating rental property. I was whining about how much of my businesses profits are eaten in taxes (I am self employed). He said several of his clients own rental units to 'create' a passive loss...depreciation, etc that gets counted against taxes, while the passive income doesn't get taxed in the same way that regular income does. Basically a way to be in the black, while legal showing that you are in the red.
Anyone out there get into REI investing for a reason such as this? Anyone able to comment on the practicality of this idea?