Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 5 years ago, 07/19/2019
Can my partner and I both claim 'Active Participant' tax rebates?
My partner and I (not married, single filers) own a rental property through our LLC which we own 50/50. This is our first year with the rental property and we will post a loss of ~$4k. Through property taxes, interest payments and depreciation we have roughly ~$18K in write offs. We have read that 'Active Participants' can claim <$25K of write offs on their personal non-passive income.
Since we have both been actively involved in finding tenants, completing repairs etc.. Can we each claim this status to offset our separate other sources of income? The assumption would be we would split the credit and each take a ~$9K write off on our individual returns if possible.
Any help would be greatly appreciated, thank you!