Posted by John K Haslach, CPA, MST on July 16, 2005 at 06:34:38:
I have not read her book, but you may be referring to depreciation. When you buy a rental property, you must depreciate the building, even though the value is appreciating. It is not as simple as just taking depreciation and eliminating your other income.
Paper Losses - Posted by Alex
Posted by Alex on July 13, 2005 at 22:04:38:
I’ve just read “Loopholes of the Rich” by Diane Kennedy. There she talks about paper losses that one can deduct in addition to all other dedactuions from one’s income to create 0 taxable income on a property. The paper loss amount depends on one’s income and whether or not the person is a real estate professional. She doesn’t go into too much details on this one though, at least for me it wasn’t enough. Does anybody use this strategy? How does this work exactly? Is it legal to do every year? What are limitions? What’s the catch?
Thanks!