It’s a fact…
Your rental properties can do more than generate income. They may also be able to create losses you can use to offset income from your business!
Yes. It’s true. Harvesting rental real-estate tax losses is more difficult now than it used to be, but it’s still possible!
Your ability to make use of your losses depends on how much time you spend managing your real estate investments.
Want to find out more about how to be a winner when your rentals are losers? Read my new article titled Tax Tips: Deduct More of Your Rental Property Losses by Qualifying as a Real Estate Professional—Even If You Don’t Work in Real Estate!
Three ways our fact-filled article can help you:
- You’ll learn how to avoid the “passive loss” trap. It pays to make your rental property an active (non-passive) business or investment. Why? Because if you do, you can deduct the net losses from your rental property against all other active income. We’ll tell you how to play the game when you read the full article.
- We’ll explain why you should become a real estate professional. We haven’t lost our marbles. You can meet the IRS’s criteria for real estate professional status even if you work full-time in another business. According to the IRS, you’ll qualify as a real estate professional if you spend enough time in “real property trades or businesses.” You’ll get all the details when you read the full article.
- You’ll learn why “material participation” is so important. Once you’re classified as a real estate professional, you also have to show that you materially participate in activities related to the properties. But don’t worry. It’s relatively easy to prove. All you’ve got to do is put in the necessary hours as we’ll explain when you read the full article.