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Level 4
April 14, 2021
Question

rental income loss

  • April 14, 2021
  • 9 replies
  • 39 views

Client is renting out a condo in another state they claim all rent and expenses, had a 14,000 loss  however they make over $300,000 married filing jointly and the loss is not being allowed  they actively participate in the decision making, they do not ever use the condo for their own use, strictly rental,  is that because they make too much money? If so please explain  thanks

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9 replies

sjrcpa
Level 15
April 14, 2021

The $25,000 exception to the passive loss rules for active participation only apply to those with AGI under $150,000.

The more I know the more I don’t know.
PATAX
Level 12
April 14, 2021

Sjr is correct .... I also believe that the unused rental loss is carried forward... But I may be wrong... Just my opinion

sjrcpa
Level 15
April 14, 2021

@PATAX Yes unused losses carry forward.

The more I know the more I don’t know.