How to turn rental-property losses into tax deductions

Here’s good news for rental-property owners…

Your rental property can serve as a valuable tax shelter when you claim tax deductions for your rental-property losses against your income.

But to take advantage of this useful tax shelter you need to:

• Qualify as a tax-defined real estate professional
• Pass a “material participation test” for each shelter property

We’ll explain the ins and outs of this tricky area of tax law when you read my new article titled Tax Tips: Make Your Rental Property Losses Tax Deductible.

Three ways our fact-filled article can help you:

1. You’ll learn how to qualify for “real estate professional status.” The punch line? You have to pass an “hours-worked” test. This involves putting in over 750 hours of work in real-property trades or businesses. You’ll get the whole story when you read the full article.
2. You’ll learn how to pass the “material participation” test. To pass this test you must meet seven standards. We’ll list them all for you in easy-to-understand language when you read the full article.
3. We’ll warn you about the danger of short-term rentals. Short-term rentals can cause trouble. Big trouble. For example, if you don’t handle things right, your property might have to be listed on Schedule C as a business and not as a rental property. We’ll keep you out of trouble when you read the full article.