I Want to Write off Real Estate Losses: Is This Your Situation?

by Chris Schneider
House for sale

Molly Stinn, CPA details how real estate losses could benefit you come tax time:



Losses from real estate can generally only be used to offset income from “passive activities.” Any remaining losses must be carried forward — unless you’re a real estate professional.

There’s another catch: Even real estate professionals must pass a “material participation” test in order to use passive losses to offset non-passive income.

If you’re not a real estate professional, you can still qualify for an extra tax break if you “actively participate” in rental real estate and you meet certain income requirements.

Contact us for help sorting out the complex tax laws involved in real estate. We can help you get the most out of your investment.