Need help discussing tax benefits with LTR

[Dee Guzman]

We spoke to our accountant and he related that we will not be able to take advantage of depreciation for my LTR because the combined pensions are over 125k. 

How can I “minimize”my income? I only have one LTR.

[Michael Plaks]

Quote from @Dee Guzman:

We spoke to our accountant and he related that we will not be able to take advantage of depreciation for my LTR because the combined pensions are over 125k. 

I think you did not fully understand what your accountant said. You always can (and actually must) take depreciation deduction. If this deduction, together with all other deductions, is greater than your rent income - then you have a "net loss" from your rental. It's the total loss that can be limited, not depreciation.

It's always limited to $25k. It's further limited when your total income, pensions and everything else, is greater than $100k. It's limited to $0 once your total income reaches $150k.

If your only income is pensions, and they are $125k combined, then your loss is limited to $12.5k. The higher your income, the less loss you can take. 

Good news: this loss, including depreciation, is not wasted. It is pushed into the future. You will be able to use it eventually if your income drops or if you sell this property.

PS. Some people will start talking here about "Real estate professional."  Ignore it. You cannot achieve it with one LTR except in very unique cases, such as if you spent a few months fixing it with your own hands.