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as well as losing money so you can have a deduction is never a good thing
Losses can be a good thing if they offset gains elsewhere, thus saving you paying taxes. A few years my rentals suffered losses and I used them to offset other income from taxes.
Another nice thing about losses is that they can be applied against prior years or used in the future (both with limitations re: # of years). You can apply a loss in the current year to offset a gain in a previous year by refiling, and IRS will refund whatever part of your prior year taxes you paid.
bull . losses are never a good thing . are you kidding us . don't have a loss with that gain and i will gladly pay the tax any day . losses are losses , the fact you can subtract it off a gain is lipstick on a pig. making 100 bucks and losing70 but paying tax on 30 still sucks . loses are loses no matter how you want to dress em up .
bull . losses are never a good thing . are you kidding us . don't have a loss with that gain and i will gladly pay the tax any day . losses are losses , the fact you can subtract it off a gain is lipstick on a pig. making 100 bucks and losing70 but paying tax on 30 still sucks . loses are loses no matter how you want to dress em up .
your choice is die or kick the tax can down the road and be stuck with illiquid real estate forever .
we ended up having to pay the piper when we reached retirement and no longer wanted anything not fully liquid with nothing to do with tenants . it sucked to because now the tax rate jumped for us from 15% to 23.80% and triggers a medicare premium surcharge.
your choice is die or kick the tax can down the road and be stuck with illiquid real estate forever .
1031 exchange. When the heirs get the RE the deferred taxes go away. Sonds good to me.
Real Estate is not as illiquid as it may seem. The equity can be borrowed against and the interest can be deducted on that loan. Try borrowing against your brokerage acct.
1031 exchange. When the heirs get the RE the deferred taxes go away. Sonds good to me.
Real Estate is not as illiquid as it may seem. The equity can be borrowed against and the interest can be deducted on that loan. Try borrowing against your brokerage acct.
well that is to you . for those who do not want to hold the real estate until death then it gets paid back . as well as sustaining losses beyond depreciation for tax breaks is not a good thing period .
I hope I spend my last dollar on my last day. I might change my mind if I get into a LTR (workin' on it) and if so I'd like my SO to be comfortable for the rest of her life. By the time I get that old I expect to be in something uber-conservative, like cash and CDs (or T-bills).
well that is to you . for those who do not want to hold the real estate until death then it gets paid back . as well as sustaining losses beyond depreciation for tax breaks is not a good thing period .
Exactly. Some of us have no relatives and no heirs. Though I’m a fanatical devotee of “buy and die”, I’d like to reserve the right to sell, if only theoretically, at any time. And as for the bit about borrowing against one’s real-estate holdings, well, that’s fantastic, if say one has a business-idea that needs an infusion of cash. For the rest of us, the main problem is how to put existing cash to work. In fact, I would rather find a “reliable” real-estate speculator and act as his/her bank.
1031 exchange. When the heirs get the RE the deferred taxes go away. Sonds good to me.
Real Estate is not as illiquid as it may seem. The equity can be borrowed against and the interest can be deducted on that loan. Try borrowing against your brokerage acct.
A margin account let’s you borrow from a brokerage.
Real estate is certainly illiquid. You can only take loans against it , the same as any loan. In fact if the bank likes your face you can get loans with no property ,as a loan is still a loan , it ain’t your money..
You have to pay to borrow money. Helocs now have the same underwriting requirements as mortgages so , no you may not always get one. As well as helocs were closed in the financial debacle so you can’t count on them either .
Last edited by mathjak107; 10-08-2018 at 05:40 PM..
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