All Forum Posts by: Jim Madden

Lynda, What is your opinion about the necessity of finding a local Dallas CPA for advice or, because we are dealing with Federal tax laws, seeking nationally a CPA for advice?

Lynda, Joseph, thank you for taking the time to respond. Things are much clearer now. I will try and find a CPA that frequently deals with these types of returns and strategies. 

I am a new, confused investor that bought four single family turnkey homes in 2016. I had a CPA do my taxes and am not clear about the tax advantages of owning SFHs. I do not qualify as a real estate professional.

1. Does this mean I am a passive investor?

2. Are the Schd. E deductions only applied to rental income, and not W-2 wages, social security payments and IRA withdrawals?

3. Does the income limit of $100,000 and phasing out at $150,000 apply to passive investors or real estate professionals?

4. Does the $25,000 deduction limit apply to the above information?

5. Is my tax situation described simply that If I keep my income(SS payments, W-2 income and IRA withdrawals) under $100,000 I can deduct up $25,000 from my rental income? What do I lose if I exceed $150,000?

6. Is the goal to have deductions that exceed rental income, so that income is sheltered from taxes?

Pleas help. The more I read BiggerPockets, the web and IRS documents, the more confused I get.

Thanks, Mark.

I withdrew money from my IRA and it will be taxed as ordinary income. Can I use Rental property losses to offset the taxes owed from this withdrawal when I file my taxes?