All Forum Posts by: Missy Price

Thank you in advance forum members. I need clarification on how the sale of a rental property would impact my 2018 tax liability. The rental property is in NC where I have no W2-income (currently live in CA). My AGI for 2018 is estimated around $169K and $18K exemption for an estimated Taxable income of around $154K (factoring in CA tax refund). This puts me below the $157,500 at 24% tax bracket (Head of Household) on W2 wage only without the sale of the rental property. Factoring sales agent fee of 6%, repair, mortgage payoff etc., I would have about $94K in capital gains. I used the online calculators from multiple sites and came up with total capital gains tax for both Fed and NC at around $33K. I have a carryover loss of around $25K not included in this calculation. Does the $94K in capital gain push my AGI up to the next tax bracket (32%)? Or, is the real estate capital gain tax (and depreciation recapture) calculated separately? I am trying to determine my estimated tax hit from the sale. I am aware of the 1031 exchange and do not want to do an exchange and prefers to exit the rental business completely (too much headache). Thank you

Thank you, I appreciate the feedback. Potential sale of one of the rentals in 2018. Taxable income exceeds $157,200 on W2. What is the possible impact of the new law on the capital gains from the sale of the rental? 

Yes, I was referring to the new 20% deduction for pass-through entities. Is that allowed if it's a passive loss through the LLC? Many thanks

 Thank you- that was my understanding. Does the new tax law change this scenario? Someone was telling me that I could potentially use the pass through under the new law.

Wage earner with AGI over $150k and 2 rental properties, passive. Is there any way to claim losses on the rental? Is putting the losses through an LLC allowed? The properties are titled in my name. Thank you- great thread

Hello Forum members, I need your help. I am a W-2 Wage earner with adjusted income above $150K and unable to deduct the rental losses on my 2 properties. I have a registered LLC, but the properties are not titled in the LLC name (also mortgage on the properties). Is there a way to get the losses deducted through the LLC? Also, the new GOP tax plan is very generous for pass-through entities. I was wondering if there is a way to claim the loss through the LLC to allow for tax deduction without transfer of the title to the LLC. Thank you.