strategy. Why Should You Care About Being a Real Estate Professional? If you have a real estate passive loss, you may have a limit in how much you can deduct. If your adjusted gross income is under $100,000, you can take a deduction of up to $25,000 of the loss provided you have active participation. If your adjusted gross income is over $150,000, you can’t take any passive loss deduction against your other income. Between $100,000 and $150,000, the amount you can deduct phases out. If you (or your spouse, if you’re married, filing jointly) are a real estate professional, you can take a deduction for all of the passive loss. is no phase out due to income. During the crazy times of real estate prior to the great recession of 2007, there were people who bought property just to buy property. There was the idea that you needed to buy property today because
strategy. Why Should You Care About Being a Real Estate Professional? If you have a real estate passive loss, you may have a limit in how much you can deduct. If your adjusted gross income is under $100,000, you can take a deduction of up to $25,000 of the loss provided you have active participation. If your adjusted gross income is over $150,000, you can’t take any passive loss deduction against your other income. Between $100,000 and $150,000, the amount you can deduct phases out. If you (or your spouse, if you’re married, filing jointly) are a real estate professional, you can take a deduction for all of the passive loss. is no phase out due to income. During the crazy times of real estate prior to the great recession of 2007, there were people who bought property just to buy property. There was the idea that you needed to buy property today because
IRS-Survival-Guide-2017.docx