Originally Posted by
crewdawg
Maintained the status quo on real estate properties. Looking to do some hard money lending. May get more serious about properties if people stop paying stupid prices for real estate. Question, for tax purposes, do you consider yourself a real estate professional? Opens up lots of tax opportunities and probably wouldn't be hard to justify depending on how your view our hours worked per year.
Also, looking to branch out into a few entrepreneurial ventures this year and see where they go. Figure I might as well put my off time to good use lol.
I file jointly with my wife, so we use her as the real estate professional. We also use the 469 election which groups all activities rather than qualifying as a professional for each entity. This captures the losses on the K-1s from our passive investments as well as the companies we operate.
You are right about the interpretation of hours worked for qualifying individually. The most favorable for qualification would be block hours on your Delta timecard. Next most favorable is using pay hours. The worst calculation would come from using duty day. There are also some interesting interpretation possibilities for pilots on reserve. This falls squarely in the category of DYODD and get advice from a tax professional.
I've been reading up on the topic of Acquisition Entrepreneurship. Buy then Build by Walker Diebel is worth a read. Acquira is a company that follows this model with a JV approach for buying a business. The focus is on owning and running a business, not being the business. "Work on your business, not in your business" is a common theme among entrepreneurs who successfully scale.