Building Loss affecting AGI

[Account Closed]

Hi,

I apologize if this question has been asked. 

If you form an S Corp with your properties and your building has losses, can you write off those losses against your AGi?

[Ashish Acharya]

@Account Closed , 

Yes, you can, but depends on a number of limitations. 

Is this a rental activity? If yes, Is there a reason why you have rental in S-corp? It not not recommended to hold rentals in S-crop. 

There are various limitations on deducting you loss, Passive activity limitation, At-risk limitation, and basis limitation. 

If this is rental activity, If you have AGI more than 150k - your loss will be limited by Passive Activity Loss Limitation. 

Although I dont expect this to be an issue, your basis in your S-corp and the At-risk amount ( basically your investment in the S-corp) is not as much as your loss, the loss will be limited.