Howdy from Texas!
I have a question about whether the losses from my cost segregation study can offset my active income.
I’m a real estate investor with a W-2 job. I purchased an RV park in 2023 under an LLC that I own. We had a cost seg study performed. Now it’s tax season for '23. My W-2 income is substantially more than the RV park income and that will be true in 2024 as well. Can the losses from the cost seg offset my active income last year and this year?
The RV park is an extremely active business. I understand that it’s considered a hotel or hospitality, not a passive investment. I log my time and spend about 1200 hours a year on acquisition, maintenance and business management operations for the park. It does have paid employees as well.
If the cost seg does offset my active income in '23, does that mean I can essentially get a refund on the taxes I paid from my W-2 job?
Thanks for your great advice here and on the Directed IRA pocast; that’s where I first heard of your main street business show.