in a scenario where the rental income offsets the expenses such as property tax, mortgage interest, HOA fees etc, can the depreciation be taken to make it a loss? Here I am talking about the 27.5 year depreciation excluding land.
Does the depreciation only meant to offset the income from the rental property? Can it go beyond and negate the income as loss?
my spouse is an active realtor so I would like to take advantage of the real estate loss against my W2 tax.
investment property depreciation on top of expenses offset only rental income?
byu/Vast-Organization-96 intax
Posted by Vast-Organization-96
2 Comments
It can likely go beyond in your situation if your spouse qualifies as a “real estate professional.”
The Code provides multiple limitations for deducting net losses.
1. Passive loss
2. At-risk
3. Excess business loss
Yes, no, yes… if your income is not high enough to force that the loss be carried forward.