Single Family Tax Advantages

[Jim Madden]

I am a new, confused investor that bought four single family turnkey homes in 2016. I had a CPA do my taxes and am not clear about the tax advantages of owning SFHs. I do not qualify as a real estate professional.

1. Does this mean I am a passive investor?

2. Are the Schd. E deductions only applied to rental income, and not W-2 wages, social security payments and IRA withdrawals?

3. Does the income limit of $100,000 and phasing out at $150,000 apply to passive investors or real estate professionals?

4. Does the $25,000 deduction limit apply to the above information?

5. Is my tax situation described simply that If I keep my income(SS payments, W-2 income and IRA withdrawals) under $100,000 I can deduct up $25,000 from my rental income? What do I lose if I exceed $150,000?

6. Is the goal to have deductions that exceed rental income, so that income is sheltered from taxes?

Pleas help. The more I read BiggerPockets, the web and IRS documents, the more confused I get.