# @edwardcollins_upleveled on Instagram

- **Type:** Video
- **Original URL:** https://www.instagram.com/p/DLkyxdfgQx7
- **Gondola URL:** https://gondola.cc/posts/35104124-edwardcollins-upleveled-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/488a367c37.jpg
- **Posted:** 2025-07-01T18:17:12.000+00:00
- **Account Owner:** Edward Collins | Money Lawyer & Wealth Strategist (@edwardcollins_upleveled) — https://gondola.cc/edwardcollins_upleveled

## Caption

The $42,000 Mistake Most Real Estate Investors Don’t See Coming. 

You bought a short-term rental. 

You ran cost segregation. 

You generated paper losses. 

And now… you think you’re about to wipe out your W-2 income? 

⚠️ Not so fast. 

The IRS sees this all the time — and they’re not impressed. 

Since 1986, Passive Activity Loss Rules have been the law of the land: 

❌ You can’t use passive real estate losses to offset active income. 

Unless — and this is a big unless — you qualify for one of the very narrow exceptions. 

The most misunderstood? 

🛏️ The Short-Term Rental Loophole. 

Here’s what has to be true: 

You must materially participate (100+ hours) per property. 

No one — not even your property manager — can work more hours than you. 

You must log management activities, not investment ones. 

And that’s where people blow it. 

Scouting deals? 

Setting up financing? 

That’s investing — not management. 

It doesn’t count toward your hours. Period. 

So what happens when the IRS audits your time log? 

You get reclassified. 

Your losses become passive. 

And the $42,000 tax deduction you thought you had? 

🚫 Gone. 

If you want to use real estate to create real wealth, you need to stop guessing… 

And start learning the actual rules of the tax game. 

👇 Drop “GOB” and I’ll send you the free training that breaks it all down. 

Credit (IG): 
Brandon Hall – [taxmeifyoucan] 

 SF0724

## Stats

- **Views:** 130
- **Likes:** 227
- **Shares:** 0
- **Comments:** 52

## Credits

These are the roles credited on Gondola. Credits may be incomplete.
A brand, account owner, or featured person is not necessarily the creator.

| Name | Username | Profile | Role |
| --- | --- | --- | --- |
| Edward Collins | Money Lawyer & Wealth Strategist | @edwardcollins_upleveled | https://gondola.cc/edwardcollins_upleveled | Talent |
| Hector Garcia | @Hector_FilmSchool | https://gondola.cc/Hector_FilmSchool | Content Producer |

---
Copyright (c) Gondola