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Updated about 1 year ago on .
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Can I offset my W2 Income through Negative Rental Income?
After depreciation, maintenance, property taxes, and insurance, I am technically losing money on this year's rental income (only rented my property during Q4). Can I offset my W2 income with this loss or would my net rental income be $0?
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- Tax Strategist| National Tax Educator| Accepting New Clients
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If your AGI is under $100k you can deduct up to $25,000 of rental losses against your w2 income.
If your AGI is over $100k and below $150k, you can deduct some, but it phases out. At $150k you can no longer deduct and those losses flow forward.
If your rental is a short-term < 7 day stay and you materially participate, you can deduct losses as it qualifies as non-passive
If you're a real estate professional per IRS status you can deduct losses as well sicne they're non-passive.
