C Tann-Starr's Outside Blog

head_left_image

Active, Passive and Portfolio Income (Planning For Your Future)

My last post generated an interesting series of questions I figured I'd answer in public rather by e-mail: (1) Always hire a tax professional to deal with tax questions. (2) Realtors do not give tax advice. (3) Realtors talk in "generalities" because it keeps us out of trouble. (4) My blog is entertaining to me. You are just along for the Wordy C ride. Sometimes you learn something interesting. Sometimes you don't. It's up to the individual to stick around or leave. I hope you stick around. If not, I forgive you. Disclaimers done (LMAO). ;-)

Types of Income:

Active: includes earnings from wages, salaries, commissions, bonuses and other payments for services.

Passive: taxpayer is not materially participating (e.g. rental income from a tenant).

Portfolio: includes earnings derived from interests, dividends, annuities, and royalties, etc. not derived from the ordinary course of business...

My advice, go directly to the IRS website for more information and the official publications: http://www.irs.gov/

To answer the rest of your questions and respond to your statements: It is, in my humble opinion and based upon my limited knowledge of my own life, up to you to decide how many streams of revenue you would like to have to maintain your lifestyle. When I share what I am doing, I'm sharing because sometimes people can learn from my mistakes and learn from what went well. Sometime people suggest things in the comment sections that I find useful, or funny or encouraging. If I post, it's because it is what I want to talk about. Nothing more than that.

I want to talk about buying land. I want to talk about passive income for my kids so they can have something when they grow up. I want them to have the option of keeping it, developing it or selling it off.

My parents brought several properties during their lifetime. I'm following in their footsteps. I'm reading my Trump University stuff and trying to do what I can with the resources at hand. I can buy more land than I can buy houses, so I will worry about building the homes later. That's just me...

You have to pull the IRS PDFs for a better definition that the cheap ones I've provided, then you need to hire a tax professional and attorney of your choice. After that, hire yor buyer's broker. Don't hire me because you want my version of tax advice. Hire me because you want to buy real estate. I'm part of a team, your team, not the whole team. I'm your real estate source, not your tax advisor. :-)

Disclaimer: Any comments and contributions provided on ActiveRain.com (or other electronic or print media) does not establish an agency relationship with any third party. Blog posts are intended to be informational only. Please be advised that real estate practices vary in regions and from state to state and market to market. The information contained herein does not constitute legal advice. All parties in need of legal, accounting, tax, or real estate guidance are directed to consult with the licensed professional of their choice. Please seek specific guidance from a retained professional in the specific field(s) required to service your interests. I and/or team blog writers make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this web site and its associated sites inclusive of but not limited to CarolynTannStarr.com MySpace/TannStarr 46486 NY Working Moms Examiner ActiveRain Group Club Chaos ClubChaosAgents.com CyberMinions.net CTannStarr Outside Blog CTannStarr Localism Blog TannStarr.net UberMental.com

© Carolyn Tann-Starr, 2008-2015. Unauthorized use and/or duplication of this material without express and written permission from the re-blog authors (when appropriate)and Carolyn Tann-Starr is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Carolyn Tann-Starr, (the re-blog authors when appropriate) and Wordy C's Blog with appropriate and specific direction to the original content.

 

Carolyn Tann-Starr Outside Blog Outside Blog Minion Report on Facebook Carolyn Tann-Starr on Blogger  CTannStarr on Twitter Tann Starr on YouTube TannStarr.net

Tann Starr on iTunes

Tann Starr on IMDb

Kim Harrison  Vicki Pettersson  Jocelynn Drake  Jaye Wells  Amy DeZellar  Lynn Rush  Jeannie Holmes

Ward Nasse Gallery

Kendall Grey  Jeaniene Frost  Faith Hunter  Stacia Kane  Sherry Soule

Alicia Anderson: Touched By People Places and Things

CarolynTannStarr.com

Tann Starr on Amazon.com

Life With Wee People

Outside Blog Minion Report

MySpace

Ask me something...

Tann Starr on Jango Music

Tann Starr on Blip.fm

Felix Lipov, Official Photographer, Ambassadors of Chaos

 

 

 

Comment balloon 5 commentsC Tann-Starr • May 23 2009 10:29AM

Comments

C - "I can buy more land than I can buy houses, so I will worry about building the homes later. That's just me..."      Didn't Will Rogers say "Buy land, 'cause they ain't making it any more" ?

I am allergic to the IRS, and have a professional exterminator accountant handle them. So I just focus on my thing most of the time - Real Estate. Have a Happy Memorial day weekend.

Posted by Claude Cross, Charlotte NC Homes For Sale (Homes By Cross, Inc. ) over 9 years ago

Happy Memorial Day C!   -  To Claude:  love the eterminator remark.

Posted by Maria Morton, Kansas City Real Estate 816-560-3758 (Chartwell Kansas City Realty) over 9 years ago

C - I love multiple streams. Although I am afraid that the rules are changing dramatically right now.

Posted by Mike Saunders (Lanier Partners) over 9 years ago

I try to never speak of the IRS, but I agree with buying land, they really don't make much of it anymore if they still do.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) over 9 years ago

LOL @ Claude. I do believe Will Rogers may have. ;-)

Maria, the E remark cracked me up. :-)

Big Mike, the rules are in flux and we've put everything on hold to watch them sort through their newly created unintended consequences... (LOL)

JL, I second you in spades. :-)

 

 

Posted by C Tann-Starr (Tann Starr & Associates, Inc.) over 9 years ago

Participate