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Updated 5 months ago, 06/22/2024

User Stats

102
Posts
74
Votes
Gwyeth Smith
  • Rental Property Investor
  • Huntington, NY
74
Votes |
102
Posts

Classifying Spouse as Real Estate Professional

Gwyeth Smith
  • Rental Property Investor
  • Huntington, NY
Posted

I am curious if classifying my spouse as a real estate professional can offset ordinary income when filing jointly. She does actually classify as such. We have rental properties in various LLC's and until recently were under the impression that the deductions we could claim against my W2 income was limited to her percentage interest in the LLC's (i.e. since we are 50/50 members in the LLC that only 50% (her share) of passive losses can be deducted against my ordinary income. Can anybody help clear this up for me? Thanks in advance.

Gwyeth

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