Tax question from a newbie

[Larry Spradling]

2018 was my first year of owning properties.  I bought two turnkey properties and received a 1099 for the rental income they generated.  I entered this info into Turbo Tax.  I was expecting some tax benefits.  Am I missing something or doing something wrong?  Would appreciate any help or insight.

[Ashish Acharya]

Originally posted by @Larry Spradling:

2018 was my first year of owning properties.  I bought two turnkey properties and received a 1099 for the rental income they generated.  I entered this info into Turbo Tax.  I was expecting some tax benefits.  Am I missing something or doing something wrong?  Would appreciate any help or insight.

 Is your 1099 Net of expenses  or gross? 

Your gross rent revenue is decreased by the expenses. A depreciation is one of the expenses. Did you calculate the depreciation or put the info in the turbo tax for it to calculate?

If your expenses are greater than the rent, than you get to deduct the loss against your income if your Modified AGI is below 150k. ( unless you qualify for RE pro and it’s requirement) 

There is not tax benefit if your have net income. You probably will pay more or higher taxes if there is no loss. 

The properties has to carefully analyzed  and investing has to be carefully structured if a tax shelter was one of your preferences.