Posted by William Bronchick on February 15, 2008 at 13:31:49:
A land trust will not affect any tax issues, the trust is disregarded for income tax purposes. You are probably thinking of a different type of trust.
Trusts & PAL tax questions - Posted by patsears
Posted by patsears on February 13, 2008 at 13:13:32:
Hello,
I have a question regarding my choice of an entity to use for my rental business and the IRS rules on Passive Activity Loss Rules. I was all ready to start using land trusts to hide ownership of my homes when I read that to use the $25,000 offset that the IRS allows for landlords that make less than $150,000 MAGI, the property cannot be held in a corporation or trust.
Since I make ~$110,000/yr as a pharmacist, being able to deduct any losses I incur in my rental business from my salary is a good deal.
Am I screwed out of the wealth hiding benefits of the land trust if I want to use this deduction?
Any thoughts?
Thanks!
patsears