 Reporting Losses (by Jeff [MN]) Feb 23, 2010 7:45 PM
 Reporting Losses (by Colin [CO]) Feb 24, 2010 1:44 AM
Reporting Losses (by Rose [CA]) Feb 24, 2010 2:18 AM
Reporting Losses (by proofstyle [PA]) Feb 24, 2010 2:24 AM
Reporting Losses (by billy [MA]) Feb 24, 2010 7:19 AM
Reporting Losses (by Jeff [MN]) Feb 24, 2010 8:10 AM
Reporting Losses (by N [GA]) Feb 24, 2010 9:53 AM
Reporting Losses (by Jeff [MN]) Posted on: Feb 23, 2010 7:45 PM
Message:
Hi,
I have some rental loss every year since 2006 and I wonder how do I accumulate these losses until I sell the rental property. I never had any good wages to absorb the losses.
So, am I supposed to accumulate the losses and show it on every year's return until I sell the property? Or do I wait until after I sell the property and look back to the years I acquired the losses, add up and then enter the total on that year when I sold the property?
Please help,
Thanks! --97.116.xxx.xx |
Reporting Losses (by Colin [CO]) Posted on: Feb 24, 2010 1:44 AM
Message:
Passive Participants - If you own part or all of an income property and do not actively participate in the management of the property, you are not allowed to write off any rental losses in the year of the loss on your tax return. Your rental losses build-up from year-to-year until you have rental income to offset the losses or you sell the property. When you sell the property, you can write-off all unused rental losses that have accumulated while you have owned the property.
Active Participants - If you own income property and actively participate in the management of the property and your adjusted gross income is less than $150,000, you can write off up to $25,000 in rental losses. For an adjusted gross income of $100,000 or less, you can write off $25,000 in rental losses. The amount of rental losses that you can write off is proportionately phased out between $100,000 and $150,000. For example, if your adjusted gross income is $125,000, you can write off $12,500 in rental losses in the year of the loss. If you are an active participant and your adjusted gross income is $150,000 or more, you can write off no rental losses on your tax return in the year of the loss. Be sure to verify IRS guidelines if you are going to claim active participant status. Note: When you sell your income property, you can write-off any unused rental losses that have accumulated while you have owned the property. --218.216.xx.xx |
Reporting Losses (by Rose [CA]) Posted on: Feb 24, 2010 2:18 AM
Message:
Pay to have an Accountant or CPA to do your taxes, you are probably losing deductions. --74.42.xxx.xx |
Reporting Losses (by proofstyle [PA]) Posted on: Feb 24, 2010 2:24 AM
Message:
Any "active participant" should carefully review the IRS definition of Real Estate Professional. NO LICENSE required, just time on RE activity. That designation overcomes the 25k limit. --64.12.xxx.xx |
Reporting Losses (by billy [MA]) Posted on: Feb 24, 2010 7:19 AM
Message:
its good if u are an active participant,make credit decisions,contact guys to fix things,are the "go to guy for problems etc.then u can deduct up to 25 k loss as described above.hope things get better. --208.58.x.xx |
Reporting Losses (by Jeff [MN]) Posted on: Feb 24, 2010 8:10 AM
Message:
So how do I accumulate and show the losses on form 1040? Do I report the accumuated losses every year on the form or do I wait until the year when I sell the duplex? --97.116.xxx.xx |
Reporting Losses (by N [GA]) Posted on: Feb 24, 2010 9:53 AM
Message:
Just because you have losses to report does NOT mean you need a CPA. ALL of the tax programs (TaxAct, Turbo Tax etc) walk you through the step of entering your losses etc and report it on the proper forms. --12.193.xx.x |
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