Dear All,I have a question on my two rental properties: One property has a profit this year ($2k profit, but carry over loss is $30K); The other property is a loss ($4k loss, carry over loss is roughly $25K). 

They discovered that we feel a loss twice as hard as we enjoy a gain.

This process is quite specific and must be adhered to with strict guidelines, including timelines and the nature of the property being purchased.Another method is the lazy 1031 exchange which is banking passive losses on your 8582 FORM from depreciation on other parts of your grouped portfolio such as several other real estate syndications.

Maybe your perception was different, but I remember the sense we had at Wacker Neuson going through rounds of layoffs, dealers defaulting, order cancelations and no sense when the construction equipment industry would recover, or if there would even be a full recovery - ever.. nobody had ever seen anything like it. 2008 was bad, I think Lehman Brothers collapsed in October, by 2009 we had to assume the equipment industry would never be the same.

Several factors can increase or decrease the adjusted basis, says McGuff.Increases in adjusted basis can result from:The cost of additions and improvements to the houseMoney spent to restore the property after damages or lossLegal fees incurred in relation to the propertyDecreases in adjusted basis can result from:Receipt of insurance payments due to a casualty loss or theftTax credits for home energy improvementsIf you sold your primary home last year, there’s little you can do to avoid capital gains tax liability when you file taxes this April, Liddiard says.

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

If that were the case, you could claim a $100k loss in your purchase. 

Your lender will also have minimum guidelines for what they require, but I recommend getting rental loss coverage on your deals.

And since you just spent 100k rehabbing those 9 homes your at $254k purchase with YOU taking all the risk, effort and energy... plus the loss of income while you rehab and resell those 9 trailers which is going to take time. 

There are many CPAs here and many investors who think they are CPAs.The key issue to understand is: you cannot create any tax losses from renting rooms in your house.