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Updated about 8 years ago on . Most recent reply
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Passive Activity Loss (PAL)
If one qualifies for the exception to the Passive Activiry Loss (PAL) due to Modified Adjusted Gross Income (MAGI) at 100K or under, can he/she deduct rental losses where no rental income existed that year?
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@Peter Duncan In my tax practice I would be very careful in this situation. If you have had absolutely no rental income for a good reason, ie going through a lengthy eviction or home damaged and being repaired that might justify it but in my mind not having any rental income is a red flag.