Comments on: The $25,000 real estate loss limit and AGI greater than $150,000 http://www.livelearninvest.com/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/ Living life to its fullest by generating passive income through investments Thu, 02 Feb 2012 03:11:13 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: JS http://www.livelearninvest.com/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/comment-page-2/#comment-172924 JS Mon, 16 Jan 2012 15:25:38 +0000 http://www.livelearninvest.com/2007/03/23/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/#comment-172924 Well a lot has changed personally since I wrote in 2009. One unfortunate Way to combat this AGI dilemma is a divorce like I will be having hopefully next month. Don't recommend though. Since my two rental properties are more than 60% under, I'm going to short sale. (I can't afford to wait it out at this pace). Sucks but why keep up with the liabilities, and cut my losses now. Well a lot has changed personally since I wrote in 2009. One unfortunate
Way to combat this AGI dilemma is a divorce like I will be having hopefully next month. Don’t recommend though. Since my two rental properties are more than 60% under, I’m going to short sale. (I can’t afford to wait it out at this pace). Sucks but why keep up with the liabilities, and cut my losses now.

]]> By: Mike http://www.livelearninvest.com/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/comment-page-2/#comment-172909 Mike Mon, 16 Jan 2012 13:35:26 +0000 http://www.livelearninvest.com/2007/03/23/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/#comment-172909 Looks likes this post has been hit at the beginning of every year since '07. First time 150k hitter, married but wife didn't work. Just started tinkering with turbotax and was just floored with the non-deduction. It's unreal how so little has been inflation indexed over years, most of us are fortunate enough to know how to kick @$$ in the mornings for income, but we're punished. Looks likes this post has been hit at the beginning of every year since ’07. First time 150k hitter, married but wife didn’t work. Just started tinkering with turbotax and was just floored with the non-deduction. It’s unreal how so little has been inflation indexed over years, most of us are fortunate enough to know how to kick @$$ in the mornings for income, but we’re punished.

]]> By: Long Island is expensive http://www.livelearninvest.com/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/comment-page-2/#comment-171836 Long Island is expensive Sun, 08 Jan 2012 05:32:43 +0000 http://www.livelearninvest.com/2007/03/23/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/#comment-171836 Same boat last year also had to pay AMT what the heck... I wan't to know what business Neil in Ca set up.. Was it an LLC or 1120s because I thought that real estate in 1120s was also subject to same AGI of 150k when passed through.. Let me know Thanks Same boat last year also had to pay AMT what the heck… I wan’t to know what business Neil in Ca set up.. Was it an LLC or 1120s because I thought that real estate in 1120s was also subject to same AGI of 150k when passed through.. Let me know Thanks

]]> By: investingGA http://www.livelearninvest.com/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/comment-page-2/#comment-154439 investingGA Thu, 18 Aug 2011 00:15:48 +0000 http://www.livelearninvest.com/2007/03/23/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/#comment-154439 Not at the 150k but should be soon. Been maxing out 401k to stay under and looks like the wife will have to as well to stay under 150K. i agree, h/w should be 250k- 300k. 1986 was a long time agon and those making 6 figures were higher up the corporate ladder then compared to where I am now. How do the real rich do it? Not at the 150k but should be soon. Been maxing out 401k to stay under and looks like the wife will have to as well to stay under 150K. i agree, h/w should be 250k- 300k. 1986 was a long time agon and those making 6 figures were higher up the corporate ladder then compared to where I am now. How do the real rich do it?

]]> By: YankeeSC http://www.livelearninvest.com/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/comment-page-1/#comment-139699 YankeeSC Fri, 22 Apr 2011 15:39:24 +0000 http://www.livelearninvest.com/2007/03/23/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/#comment-139699 We are in the same boat. Smaller Scale. Cannot take the losses on a rental for the last 2 years. CPA says, the losses from 2008, '09, '10 will keep compiling until we can either spread the losses over (don't know how many) years that we do NOT make over $150K or if I sell, then the losses are a straight deduction from my capital gains. In my case, my property has depreciated to near nothing, so capital gains are keeping me from selling it. Have rented it since 1987....My capital gains are about $50K so I can take losses of $9800 and $12000 off so now CG would be $50K - $21,800 = $29,200. That helps me in the long run (IF I can sell) We are in the same boat. Smaller Scale. Cannot take the losses on a rental for the last 2 years.

CPA says, the losses from 2008, ’09, ’10 will keep compiling until we can either spread the losses over (don’t know how many) years that we do NOT make over $150K or if I sell, then the losses are a straight deduction from my capital gains. In my case, my property has depreciated to near nothing, so capital gains are keeping me from selling it. Have rented it since 1987….My capital gains are about $50K so I can take losses of $9800 and $12000 off so now CG would be $50K – $21,800 = $29,200. That helps me in the long run (IF I can sell)

]]> By: Jim http://www.livelearninvest.com/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/comment-page-1/#comment-139051 Jim Mon, 18 Apr 2011 18:27:06 +0000 http://www.livelearninvest.com/2007/03/23/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/#comment-139051 Hey Neil, I'm interested in what you did. We are in the same boat. Just paid a huge tax bill because 20K rental loss was not allowed as decution due to AGI over $250K. Did you set up an LLC? in which state? We're in CA as well but i don't know if CA is the best place to start an LLC. So will this really lower AGI? How des it affect AMT? thanks! jim Hey Neil,
I’m interested in what you did. We are in the same boat. Just paid a huge tax bill because 20K rental loss was not allowed as decution due to AGI over $250K. Did you set up an LLC? in which state? We’re in CA as well but i don’t know if CA is the best place to start an LLC.
So will this really lower AGI? How des it affect AMT?

thanks!
jim

]]> By: Neil http://www.livelearninvest.com/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/comment-page-1/#comment-138460 Neil Thu, 14 Apr 2011 15:28:19 +0000 http://www.livelearninvest.com/2007/03/23/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/#comment-138460 Ok, we figured it out. My wife and I are both professionals and bring in about $260k in W-2 money. So, what to do about my upside down, loosing money condo? It is frustrating because we lose money every month, and we can't sell it without going short sale...which we wouldn't do for moral reasons. But, we can't sit hear and Ay even more taxes and something we are legitemetly loosing money on...it's just crazy. SO, here is what we did. We set up a separate business by filing for a fictitious name (actually my tax guy did all this we just picked the name). It is a business after all. The bottom line on the business now shows a loss and carries over to my personal return as a deduction. Since it is a separate return we had to pay for 2 returns, but it still proved worth it. You can tell me what you think...but I do not feel like this is a tax cheat...simply doing it right. The IRS can't expect me to pay tax on income I simply don't get, it's ridiculous. And I am blessed to have this income, but in reality...it doesn't go fas in LA. Our house is 1050 sq ft. Hardly "rich". Ok, we figured it out. My wife and I are both professionals and bring in about $260k in W-2 money.

So, what to do about my upside down, loosing money condo? It is frustrating because we lose money every month, and we can’t sell it without going short sale…which we wouldn’t do for moral reasons. But, we can’t sit hear and
Ay even more taxes and something we are legitemetly loosing money on…it’s just crazy.

SO, here is what we did. We set up a separate business by filing for a fictitious name (actually my tax guy did all this we just picked the name). It is a business after all. The bottom line on the business now shows a loss and carries over to my personal return as a deduction.

Since it is a separate return we had to pay for 2 returns, but it still proved worth it.

You can tell me what you think…but I do not feel like this is a tax cheat…simply doing it right. The IRS can’t expect me to pay tax on income I simply don’t get, it’s ridiculous.

And I am blessed to have this income, but in reality…it doesn’t go fas in LA. Our house is 1050 sq ft. Hardly “rich”.

]]> By: Joe http://www.livelearninvest.com/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/comment-page-1/#comment-138446 Joe Thu, 14 Apr 2011 12:32:43 +0000 http://www.livelearninvest.com/2007/03/23/the-25000-real-estate-loss-limit-and-agi-greater-than-150000/#comment-138446 I am in the same situation. Marriage has its hidden disadvantages as you quickly found out. But love conquers all...they say :-) Sell it for a lost bringing a personal check at closing. I am in the same situation. Marriage has its hidden disadvantages as you quickly found out. But love conquers all…they say :-) Sell it for a lost bringing a personal check at closing.

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