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Updated almost 7 years ago,

User Stats

24
Posts
3
Votes
Rudy Duran
  • Seattle, Wa
3
Votes |
24
Posts

California Full time real estate professional losses limit

Rudy Duran
  • Seattle, Wa
Posted

Federal taxes, you're allowed to deduct $25,000 of passive real estate losses against your active income eg w2 income that you actively participate.  They phase out this deduction starting at 100k agi.  However, if you are full time real estate professional you can bypass this limit.

Does this work the same for Californian income taxes?

I'm using turbo tax.  my spouse federal w2 income approx 155k.  but since i'm full time RE pro, i bypass the limit and took 56k in losses according to schdule E.  On my california return, my modified agi is 155k again (pulled from a federal worksheet).  California says since it's over 150k, i get 0 losses against my active income.

Did i mess up, or does fed just allow 55k loss while california allows 0?

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