Passive Or Earned Income?
Is the proffit from rent received considered passive or earned income? I am married filing jointly if this makes a difference.
Part two of the question: If it is earned income, how should or can I structure to make it passive income?
Thanx in advance,
Don
Passive income.
Are you selling to buy another property? If so, an option may be to refinance, but not for a lower payment, but for cash out on your next investment. Then you will control 3 properties instead of two and you can still wait to sell for a stronger market. All this assumes you can pull the equity out and still rent her w/o negative cash flow.
BTW, get over it and be thankful you found someone with your same interest in REI. My wife recently got the REI bug and we are enjoying the exciting conversations we now have.
go there:
http://www.thecreativeinvestor.com/commercial/ViewTopic47501-23.html
scroll down to the post from "wexeter"
I bet if your atty, cpa & you look at the exception to the 2 years holding, one would match your situation.