RE professional status and carrying over tax losses

[Joshua Myers]

Question for my 2022 and 2023 taxes:

I qualify as a Real Estate Professional and I did a cost segregation last year. That led to a qualified business loss of 78k to carry over from 2021. For 2022 tax year I am going to do cost segregation on 2 properties which should let me show a 170-190k loss for on the rental properties. I'll have between 220-240 of earned income to report from my wife and other sources.

My question is if the business losses that carried over from 2021 will apply against the remaining earned income, or if they have to be carried forward until the rental portfolio shows taxable income.

Yes, I'm using a tax professional who specializes in real estate.

Any help will be great.

Thanks!

[Yonah Weiss]

Quote from @Michael Plaks:

@Joshua Myers

Not sure why you ask here if you work with a tax pro specializing in real estate.

 Michael, Because his tax pro might charge a consultation fee to get this answer 😉