Clarification For The $25,000 Rental Loss Allowance
My wife and I have W2 incomes of $150,000 total. I actively manage my rental properties. Are we still able to offset some of our W2 income with our rental losses? I know it is phased out at $150,000, but is that $150,000 phase-out after itemized deductions?
In other words, our income may only be $125,000 after deductions. So, would we be able to claim up to 12,500 in losses (if we have them)?
And, if we have excess losses (losses that we were unable to use), can we use them in a different tax year or are they only good when we sell a building and have a gain?
Thanks for the responses:
finniganps, I am not a realtor...so I should not have to worry about that.
newkidintown3, Just so I am on the same page...if W2 income is $150K I will not be about to use the losses this year? Adjust gross before itemized deductions & personal exemptions equals W2 income?
Adjusted gross for the passive loss allowance determination includes your W-2 income, as well as income from Schedules B, C, D and F