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The loss for 2007 was $18,453. The previous accumulated loss before 2007 was $32690, but it appears (to me, the untrained individual) that she just took the total loss and then put it in the "unallowed" column. My agi was over $211,000.
Why even fill-out the form (Sched E, deprec schedule, form 8582)...especially if it is contingient on adjusted gross income. Why not look at the agi first?
You always want to fill out the Form Sch.E and 8582 to offset gains from losses. Even if you AGI is over $150,000. You will be able to carry the losses to future years to offset any future gains from your rental homes.
Are you still there? I still have work to do at home in my office. Can you answer my question?
We are almost there on answering this for me! But the one thing is...I am a licensed realtor (and have been the last 3 or 4 years and my tax preparer knows this from the 2106 on my returns). I handle everything from A to Z on renting and managing my condo. Does the exclude me from the $150,000 limitation and allow me any deduction or not, (if so how does it work) and is there a reference I can show my tax preparer if she is mistaken?
If you are a real estate professional you can deduct losses from rental real estate from nonpassive income. The $25,000 active rental loss limitation does not apply to you. The following requirements must also be met:
1) More that 50% of your personal services during the tax year is performed in real property trades or businesses in which you materially participates.
2) You must spends more than 750 hours of services during the tax year in real property trades or businesses in which you materially participates.
Services performed as an employee in real property trades or businesses do not count unless you is at least a 5% owner.
Marvin I feel like a slow learner, but some of the terms you use are too general for my understanding, so I don't know if I qualify.
I worked 7 months of 2007 in the timeshare sales department of Marriott selling their timeshare property.
I was licensed the whole year and I did 100% ot the management of my 1 condo.
Does that qualify?
Please give me the reference to support your answer so I can take it to my tax lady. Thank you so much.
Thanks for your work!