Rental Income/Loss Flashcards
1
Q
Is it ok to offset the rental loss from your income if you are not actively participated?
A
No.If you are not actively participated, rental activity is considered passive activity, unless you are real estate professional. You generally cannot offset income or tax, other than passive income. Any excess loss or credit is carried forward to the next tax year.
2
Q
Is it ok to offset the rental loss from your income if you are actively participated?
A
Yes. You may be able to deduct up to $25000 of loss from the activity from your non passive income for joint return.
