RE Professional Passing Losses to my wife's W2?

RE Professional Passing Losses to my wife's W2?

Developer · Philadelphia, PA · Member since 2013 · 23 posts · 4 votes

I am by code a real estate professional. My wife is an attorney. We plan to file 'married filing jointly'. Through my real estate investments we can take about 400-500k in depreciation with bonus depreciation which should cover my realtor/wholesale income and her w-2 income. 

I am assuming that since we are married filing jointly that my depreciation losses will pass through to my wife's ordinary income. My question is, do we both need to be real estate professionals to take all of the depreciation or do we qualify if I am the only one as long as we file jointly?

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    7y
    Originally posted by @Aaron Osgood:

    I am by code a real estate professional. My wife is an attorney. We plan to file 'married filing jointly'. Through my real estate investments we can take about 400-500k in depreciation with bonus depreciation which should cover my realtor/wholesale income and her w-2 income. 

    I am assuming that since we are married filing jointly that my depreciation losses will pass through to my wife's ordinary income. My question is, do we both need to be real estate professionals to take all of the depreciation or do we qualify if I am the only one as long as we file jointly?

    Both of you don’t need to be be REP. 

    You are allowed to offset her income in the joint return. 

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  • Yonah WeissPro Member
    Cost Segregation Expert and Investor · Lakewood, NJ · Member since 2017 · 1k+ posts · 1k+ votes
    7y

    @Aaron Osgood You've got a sweet deal. This is what I recommend to everyone.

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