I have a question about passive loss shelter for individuals vs. LLCs: If you're an individual (and NOT a real estate professional), you can't deduct passive losses on your real estate holdings if your income exceeds $150,000 annually.

What if your properties are in an LLC and the LLC is classified as a regular company - and it produces a loss. Can this loss be classified as something other than passive loss and deducted no matter what your income is?

I am consulting my accountant but thought someone here might know as well. Has anyone done this? How do people whose income exceed $150,000 use real estate to shelter their income?

The beauty with an llc is that it is not double taxed, the taxes are passed down to the owner's personal taxes. Therefore, the same $150k limitation would apply.

I wanted to resurrect this since it didn't get a lot of replies before.

How are people making 150k+/year using real estate to save money on taxes? I know about the real estate professional classification, but what other ways are there? Anyone? Thanks.