All Forum Posts by: Kevin C.

Great job Anson, place looks really nice.

Congratulations on getting an offer already!

You're welcome Rich.

Video was quite entertaining, and at the same time disturbing.

Linkified!

http://www.youtube.com/watch?v=Jg0pDPK56Ys

"Obama pays my welfare check"..... Oh my!

Couldn't pass up the opportunity to get Josh more dollars for BP - votes dealt out as appropriate!

First I'll state I'm no CPA or Tax Professional, but...

If you are not a RE Professional, the $25K in passive loss deduction can be limited based on your income.

If your income (MAGI - Modified Gross Adjusted Income) exceeds $100K ($50k if single), the deduction is reduced.

If your income (MAGI) exceeds $150K ($75K if single), you cannot deduct any of the losses from your income, any losses would have to be carried forward and captured when the property is sold.

See IRS publication for more detail.
http://www.irs.gov/publications/p17/ch09.html#en_US_publink1000171747

Equities = Commissions.
Those that earn the commission profit whether the market is up or down.

Most of my friends have all their eggs in the 401K basket, their balances have been all over the map.

I've mentioned REI to them, but they always say RE is too scary - like stocks aren't scary!

I'll keep my toe in that water (equities), but I'm sure not going to count on equities, SS, or pensions like most advise.

Rich Said:

I put lotteries, gambling and stocks in the same category, so in my mind, since equities were recommended, that would include lotteries and gambling.

Like I stated before, I hold stocks and mutual funds, but with all the manipulating that occurs in the market (from the govt on down), I treat it the same as I would gambling.

That article describes what main stream America buys into - that's a problem....

Maybe the article is assuming the rental income would be coming from leveraged properties, that could add considerable risk.

I would think free and clear properties would pose little risk and be highly beneficial.

Taxes might be an issue if you've run the depreciation on the properties out, but there are plenty of ways to wipe out profit (for tax purposes).

Free and clear properties are my long term goal. My thought is that with F&C properties you can easily adjust rents to market conditions, market conditions that might wipe out leveraged owners.

Interesting that in this US News and World Report article about sources of retirement income, Rents and Royalties are listed last.

http://finance.yahoo.com/focus-retirement/article/109508/the-10-biggest-sources-of-retirement-income?mod=fidelity-livingretirement

Quote from article:

Welcome to BP from a fellow DFW REI.

There is a wealth of information contained in this site, and I'm convinced some of the most knowledgeable Real Estate Investors you'd ever hope to come across.

Don't be shy about posting questions or joining in on discussions.