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Old 06-10-2008, 05:13 PM
 
148 posts, read 429,218 times
Reputation: 122

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Quote:
Originally Posted by forest beekeeper View Post
LOL

Another good comparison between 'stock market' and rentals [besides the obvious risk difference]; is that stock market gains have traditionally been harder to shelter from taxes. Whereas rentals tend to shelter themselves, and can easily provide sheltering over other earned incomes.

Hey FBK, I understand much of how the sheltering using income and rental properties works, however would this only be if they are held by an owner (and not say an LLC, S Corp, etc.)?

I.e. isn't there only so much and so many years you can claim losses from them, particularly limits in terms of using them to negate other earned incomes?

Wasn't this the case back in the 70's and 80's, execs, doctors, attorneys, and other professionals using investment properties and income properties to show and take huge losses and apply them against their substantial other earned incomes, and didn't the government subsequently pass some law which severely restricted this? I'm going to have to dig it up...
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Old 06-10-2008, 05:19 PM
 
148 posts, read 429,218 times
Reputation: 122
Quote:
Originally Posted by Gladys99 View Post
Buy real estate! Husband and I bought acreage in upscale area when I was in my mid 20's. We decided we would do better by subdividing property even though we would have made out great by selling the large parcel.......anyway 2 years ago we sold one lot for 985K. First one sold at 325K 10 years ago. We have one more lot left and will wait for next real estate wave since lots are getting scarcer. we've seen 3 real estate waves during our ownership so we know it'll come. They don't make any more land. I retired 2 years ago at age 53. Did I mention we paid 65K for 16 acres? we paid more than that to develop it. good luck
Yeah, hindsight is 20/20 though. May I ask what general area was this land purchased in? Near a resort area perhaps, such as Vail or Aspen Colorado?

It was upscale roughly 30 years ago (yet only 4K per acre) when you bought it, or you just got lucky?
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Old 06-10-2008, 06:22 PM
 
4,105 posts, read 6,430,072 times
Reputation: 4200
Forget retirement! Invest in yourself. Find something that you really like doing and invest in educating yourself in that field. Your will be much happier. Find a job you like and you will never have to go to work again.
Don
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Old 06-10-2008, 07:12 PM
 
2,317 posts, read 4,642,140 times
Reputation: 1248
Quote:
Originally Posted by Dangerous-Boy View Post
I'm in my mid-20's, the only debt I have is my school loans. I don't pay rent, maxed out the 401k, and started a roth ira at fidelity. What else do I invest my money in? Right now, I make under 40k but that should rise. I spend nothing and have nonexistant social life thanks to living in the suburbs away from friends in the city. I only drive to work. The rest, I walk.
that is good you are planning now,I did the same thing in my 20's,,,took a city job with 20 year pension,maxed out 457 plan (like a 401 but for city workers)..it's great you have a plan,but still..live your life,we are not promised
anything..save money...spend money..have fun..hope for the best and be
prepared for the worst,but plan for tommorrow,and live for today...
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Old 06-10-2008, 09:30 PM
 
Location: Forests of Maine
30,721 posts, read 49,529,915 times
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Quote:
Originally Posted by karkyco View Post
Hey FBK, I understand much of how the sheltering using income and rental properties works, however would this only be if they are held by an owner (and not say an LLC, S Corp, etc.)?
That is correct


Quote:
... I.e. isn't there only so much and so many years you can claim losses from them, particularly limits in terms of using them to negate other earned incomes?
For many years such was the case. No longer.

There once was a rule of thumb, 2 years out of 3, 3 years out of 5.

alas, it is no longer.



Quote:
... Wasn't this the case back in the 70's and 80's, execs, doctors, attorneys, and other professionals using investment properties and income properties to show and take huge losses and apply them against their substantial other earned incomes, and didn't the government subsequently pass some law which severely restricted this? I'm going to have to dig it up...
Yes, back when I first learned to be tax exempt, we would run a business in the red for two years, then shut that business down for a year to go 'fallow'.

Run five or six businesses at a time, each year shutting down one.

What fun it was too

thankfully such behavior is behind us now.
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