Lane Kawaoka

Summary: In this podcast you will learn how to best utilize your passive losses.   Accredited Investors How you can re-characterize your passive losses as non-passive so you can offset your other non-passive income from your day job. One of the ways to do this is to achieve Real Estate Professional status. Currently the requirements are that you must:  1. Spend 750 personal service hours in a real property trade or business (ex. GP in a deal or actively manage real estate properties),  2. Spend more than 50% of your time in real estate than anywhere else (this typically kicks out the W2 workers),  3. Materially participate in your rental portfolio. Non-accredited Investors If you make less than $100,000 you are allowed up to $25,000 in passive losses, once you make above $100,000 those passive losses will start to phase out $1 for every $2 above $100,000. For example if you make $110,000 you will only be allowed up to $20,000 passive losses. After $150,000 of adjusted gross income (AG