Discussion:Rental property passive activity
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Discussion Forum Index --> Tax Questions --> Rental property passive activity
| 23 February 2006 | |
| Losses (income minus expenses) incurred on rental property held as a passive activity; are the losses deductible? Gains (income minus expenses) are includible as income.
Thanks | |
Chautauqua (talk|edits) said: | 3 March 2006 |
| Unless the AGI exceeds $100,000, when phase-out starts. AGI above $150,000, no deduction, but suspended losses are carried forward. | |
| 3 March 2007 | |
| until it is disposed of or used up or the person dies, whichever comes first | |
Www.cpa1.biz (talk|edits) said: | 10 April 2007 |
| Is there anyway to get rid of passive losses in the current year if TP's AGI exceeds 150k? Could the TP take the interest and taxes on schedule A of a rental property if the expenses would be considered passive. This allows the TP to get a deduction today versus possibly never getting a deduction until the residence is sold.
Any suggestions on how to manuever passive losses that are not deductible to a current deductible situation? | |
| 10 April 2007 | |
| I would suggest following the rules and not trying to make up illegal and improper ways to creatively massage the data. Just do a correct tax return. Leave the false and fraudulent tax returns to the experts at Jackson Hewitt. | |
Www.cpa1.biz (talk|edits) said: | 10 April 2007 |
| I see what you are saying Kevin but I just wanted to know if there are any loopholes, legal loopholes that is. | |
Death&Taxes (talk|edits) said: | 10 April 2007 |
| Suggest to your upper middle class clients that they use vacation rental properties for fun and games when tenants aren't there instead of making every trip a 'working trip.' Then you may allocate the interest and taxes using the 'tax court rule.' That is perfectly legal.
Have them limit rent to less than 14 days. | |
Www.cpa1.biz (talk|edits) said: | 10 April 2007 |
| This is a yearly rental so I do not think the 14 day rental is going to work. Thanks for the advice though :)> | |
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