General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 5 years ago on . Most recent reply
Earnings too high to claim passive losses?
so what happens if you have lots of passive losses on real estate - but your active income is over 150k? is there a way to still claim those loses if you are a full time employer in healthcare.
Most Popular Reply
- Tax Strategist| National Tax Educator| Accepting New Clients
- 4,443
- Votes |
- 3,697
- Posts
Starting an LLC won't make your losses available.
Passive losses are treated as such no matter where they generate- so if your LLC genrates a passive loss and it flows to your 1040 via the K1- it's still limited there. This doesn't change any thing on that side.
Your CPA gave you bad advice- the LLC isn't allowing your passive losses to reduce your ordinary income so it didn't change this circumstance.
If your Income is over $150k you have a few options
-See if you or your spouse can qualify as RE pro
-Loss bank- those losses get saved up, use to offset a gain from a trade, trade into more profitable properties, sell stocks, ect
- Generate passive income which passive losses can be utilized against .
