I meet a wired question. I know that the rental real estate loss allowance is a federal tax deduction available to taxpayers who own and rent property in the U.S. Up to $25,000 may be deducted as a real estate loss per year as long as the individual's adjusted gross income is $100,000 or less. However, one of my client has two rental properties on schedule E. The first rental property has loss of $87,915, an one schedule E line 26 of the tax return, all $87,915 is tax deductible. The second rental property has loss of $9,733 and total not deductible on schedule E, and the whole $9,733 was sent to the form 8582.
So my question is, why this person can take and deduct the whole $87,915 rental loss (over $25,000 limitation) of the first property on his individual tax return in Lacerte? Is there any rule that I did not realize?
Best Answer Click here
This discussion has been locked. No new contributions can be made. You may start a new discussion here
It likely has to do with the input for the property. My best guess is that Rental #1 is marked as Not Passive. Look at the input in one of the top sections for General Information.
It likely has to do with the input for the property. My best guess is that Rental #1 is marked as Not Passive. Look at the input in one of the top sections for General Information.
Or, was Property 1 sold?
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.