Updated almost 10 years ago on . Most recent reply
Interview after a CPA ?
I interviewed a CPA and I was told since I receive a W-2 from another job that I can not claim 100% of losses from rent house's. Is this true? And please add some additional expertise in this subject. I am looking for a CPA in Maryland. Thank you
Most Popular Reply
@Vonnie Bradleyit could be true depending on your AGI.
If your rental activities show a passive loss, you can claim up to $25k of the loss if your AGI is below $100k. That $25k begins to phase out at $100k AGI and is completely phased out once AGI hits $150k.
If you have a passive loss above $25k, you need to qualify as a real estate professional to claim 100% of the loss. To qualify, you need to work 750 hours and more than half your time in a real estate trade or business. These limits will keep you from qualifying as a real estate professional if you have a full time job.