I have 2 rental properties. One that will be profitable this year and one that will definitely not. Will the losses on one wash/negate the gain on the other or is the gain taxed as income and the loss just deducted. Please help. Thanks!
2007-07-17 15:54:58 · 3 answers · asked by TheHopper 1 in Business & Finance ➔ Taxes ➔ United States
The loss and gain will be combined and go on the Rental real estate line on the 1040. If you have an overall loss it will be deducted from your other income unless you're a very high income tax payer. Don't forget to deduct depreciation!
From the IRS web site:
"A taxpayer may deduct up to $25,000 in rental real estate losses as long as the taxpayer actively participates and MAGI is less than $100,000."
2007-07-17 16:00:19 · answer #1 · answered by Dee 4 · 0⤊ 0⤋
Report both properties on Schedule E. If there is a net gain or net loss, it needs to be reported.
2007-07-18 06:42:45 · answer #2 · answered by crazydave 7 · 0⤊ 0⤋
You'll total the two, and if you have a net gain would pay tax on that.
2007-07-17 22:57:51 · answer #3 · answered by Judy 7 · 0⤊ 0⤋