All Forum Posts by: Matt Pulkrabek

@Jay Hinrichs

@Ben Leybovich

@Greg O'Brien

Thank you all for your contribution. The majority of my income comes through my real estate activities as an agent and broker. Although I was hoping to offset this income with K1 losses as an LP, this information is still very helpful!

@Brian G.

Thanks for your response. Unfortunately, this is how my accountant was leaning as well. I was hoping there might be RE accountant who could clarify.

My question is regarding passive real estate losses. I am a real agent and investor, therefore I am considered a "real estate professional" for tax purposes. With that being said, my accountant has always allowed me to offset income with losses from investment properties. I recently had a conversation with my accountant regarding investing in Open Door Capital. ODC typically does cost segregation on their Funds, which accelerates depreciation up to 40% of the asset purchase price in the first year. My accountant is unsure whether I could use the ODC K1 losses to offset income because I am considered a limited partner and not an active owner. Any advice would be appreciated.

Thanks for the feedback. 

- Steve I have considered the self directed 401k route, but was advised by a neutral third party that there is quite a bit of maintenance and annual appraisal requirements from the IRS to stay in compliance.  Not to mention, if you can't use any of the profits, it still delays FI until 59.5 like any other retirement account, correct?  

-Syed, This has been my approach.  I have maxed out my 401k annually for the last few years and have seen great growth!  It has also allowed me to defer over $15k year in income tax.  

I have seen my net worth grow exponentially, but realize this isn't making much progress toward FI before 59.5.

Lastly, I will mention that I do have 5 rental units (10 total with a partner) and we are slowly growing that portfolio 1-2 units/year.

Here's a question I have been struggling with:  

Do I continue to save for retirement through tax deferred methods like a 401k, which grows my net worth 33% faster than a non retirement account? I am self employed, so there is not a company match (other than my S-Corp paying myself). However, the tax deferred retirement method does not make any progress towards FI prior to age 59.5 when the funds can be accessed without penalty.  (I am 38 years old)