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Updated over 7 years ago,
Small landlord exemption: always been $25K, up to $100K MAGI?
As the owner of a single rental property, I've been deducting rental losses every year, thanks to depreciation. I never thought much of it, because my W-2 income has always been well under the cap of $100,000 where it starts to get phased out, and the losses were nowhere near the limit of $25,000.
But now I am creeping up to that MAGI level, and I need to be more careful about what I deduct, and whether it makes sense to increase 401(k) contributions to stay under that cap. Have $100,000 and $25,000 always been the numbers, or do they ever get adjusted for inflation, similar to the way the standard deduction, personal exemption, and 401(k) contribution limit seem to increase slightly most years?