Taxes For Landlords: Rental loss limitations

Frequently, when renting real estate, the result is a net loss. But can you use this loss to offset other income? This tells you the circumstances where you can and when you can't. Besides providing a basic overview of passive activity loss limitation, this video describes the $25,000 "special allowance" for rental losses, and defines what a "real estate professional" is with regard to renting properties.

Additional Information and Resources:

IRS Publication 925: "Passive Activity and At Risk Rules:" https://www.irs.gov/pub/irs-pdf/p925.pdf

IRS Publication 527: "Residential Rental Property": https://www.irs.gov/pub/irs-pdf/p527.pdf

IRS Schedule E: "Supplemental Income and Loss": https://www.irs.gov/pub/irs.pdf/f1040...

IRS Form 8582: "Passive Activity Loss Limitations": https://www.irs.gov/pub/irs.pdf/f8582...

IRS From 8995: "Qualified Business Income Deduction (Simplified)": https://www.irs.gov/pub/irs.pdf/f8995...

nolo.com: "Can You Deduct Your Rental Losses?": https://www.nolo.com/legal-encycloped...

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DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or investment advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or investment professional.

The information in this video is current as of date of publication, and is subject to changes.