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Updated 12 months ago,
Massive losses, no deduction. Can a CPA please say it ain't so?
In 2023 my five properties across two single-member LLC's had 7 tenants just decide not to pay rent, and 3 roofs had to be replaced. Thank goodness for tax deductions, right? Before I was in real estate my business just bought stuff and sold it for more, so I know losses from a single-member LLC lower your AGI. Right?
Wrong. I KNOW. It goes against everything our books and meetings and articles and gurus say. But TurboTax won't move my losses from Schedule E to Federal Taxes. They say rental income is Passive and therefore ineligible. I say depreciation, travel, and auto expenses aren't passive and those should at least count for something.
Have I truly been screwed here? Can I at least somehow carry the loss over to future years so I won't get taxed on future income?