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Author: PuddinHead42 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121144  
Subject: Rental Property: Active/Passive Date: 11/29/2012 11:01 PM
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Hello board,

I am starting to investigate a VR property and understand that most of the time it tends to generate passive income, thus restricting deductions. Does anyone know if using Home Away to rent it myself qualifies it as active management versus having a local rental company do it? If so, it seems like the ability to write off additional expenses will more than offset the possible decline in rental income.

Thanks.
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Author: PuddinHead42 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 117023 of 121144
Subject: Re: Rental Property: Active/Passive Date: 11/29/2012 11:42 PM
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Also, it seems that if I have other Passive income, then I can use deductions from the rental to offset other passive income. If true, then it might make sense to transfer investment income from, say a dividend stock, to some kind of MLP that throws off passive income. Does that make any sense and what investment options would throw off passive income that could be offset by my rental expenses and depreciation?

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Author: PuddinHead42 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 117034 of 121144
Subject: Re: Rental Property: Active/Passive Date: 12/1/2012 11:07 PM
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http://fairmark.com/forum/read.php?2,20245
Passive income does not include investment income (portfolio income). The regulations state that passive income specifically does not include income from the following, including REITs. See section 1.469-2T(c)(3) below.

Of course.

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