Making a buisness out of our rental propertys

[Joy Buell]

I am looking for guidance - My husband and I own 3 properties we rent out (all have a morgage)  We thought this would be a good investment, but we found out that we make to much money to write any losses off the properties. (until we sell)

I assume starting a buisness and putting the 3 homes under the buisness would be the best thing to do.

We are really interested in someone who has done this or knows the laws.

Thank you

Joy

[Vlad K.]

@Joy Buell By making too much money you mean your adjusted gross income, which makes you ineligible to take losses from the rental properties? 

If that is the case, creating a company to have the rental properties under the company will have the same effect - your loss from the rental properties will be reported on K-1 (instead of Schedule E), which will be subject to same limitations. 

Feel free to reach out with questions.