Formerly About Advanced Micro Devices Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Road Walker who wrote (172718)	7/28/2003 9:17:37 AM
From: i-node	Read Replies (1) of 1575613

That is probably the coolest part of owning real estate that you can rent; you can take a passive loss against ordinary income(limited), while having a very positive cash flow. HEAVILY limited. In fact, the wealthy don't get that benefit at all -- the passive activity provisions specifically limit the deduction of rental losses against ordinary income to a very small (insignficant, for the wealthy) amount. Furthermore, with the current depreciation guidelines, many if not most rental properties do not generate losses in the first place. And certainly not at the level with pre-TRA86 depreciation allowed. From a common sense perspective, it doesn't make much sense to depreciate something that is increasing in value by 5% to 10% per year, does it? While real estate often goes up in value, it certainly CAN and DOES go down in value as well. You can't logically integrate market values into the computation. Structures on a piece of real property ARE, over time, wasting assets, and as such, should be depreciated. It is a business expense and SHOULD generate tax deductions.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next