Re: tax questions about rental properties - Posted by Tom Bazley, CPA
Posted by Tom Bazley, CPA on August 01, 2003 at 12:44:11:
You must have misunderstood, or the book you read was mistaken. You may only use up to $25,000 of rental real estate losses against your other sources of income. That amount is phased out at 50% of the amount that your modified adjusted gross income exceeds $100,000 (for MFJ). So, at MAGI of $150,000, you lose the right to use rental losses to offset other income. In order to take the losses, the active participation rules must be met.