Quote:
Originally Posted by motion
Another no-brainer is a rental property or two. The depreciation (which I don't really understand that well) is a great way to offset income. Its been magical for me.
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^Careful with this one...losses on rental property are subject to passive activity loss rules. You can deduct the losses only to the extent you have passive income. If you have a lot of other investments which generate income, this is passive and the depreciation on rental properties can create deductible losses. For the "ordinary" wage-slave like me, losses on rental properties will not shelter our W-2 ordinary income because the wages are not "passive" income.