Is there an income limit to claim losses from rental property? If yes, what is it?

Question

H&R block told me that if your income is >150K you cannot claim losses

Answer 1

Once your income goes above $150k you are not allowed to deduct passive losses at all. Normally, you can deduct up to $25k in passive losses. Rental property, by definition, is considered passive.

Your losses are carried forward until you have passive income or you sell the property.

Answer 2

you actually ought to employ an accountant to debate this with you. The passive loss form 8582 rolls to 2009. Your 2008 and 2009 quantities are merged. once you've an average benefit, you declare it. once you've an average loss, you *may* get to take a number of it, yet on condition that you actively take section in the resources that's may be not straightforward to do lengthy distance. form 8582 can run until eventually you promote the resources. declare the depreciation. you should on a for-earnings condominium--so skipping it in undemanding words instruments you up for earnings once you promote. If that's condominium resources, you won't be able to declare the activity/taxes on agenda A. Use agenda E like you're meant to. you should do 2 returns. Illinois because that's the position the resources is. (So sure, you'll save filing it each year you own the resources.) in spite of in case you moved. You record that as non-resident and record California as resident and take a tax credit for the quantity paid to Illinois.

Answer 3

Yes, there is a limit in NJ. But I cannot remember how much.
I think there is a limit in each State, varying depending on the rental income.