How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask RD Your Own Question
RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
510454
Type Your Tax Question Here...
RD is online now
A new question is answered every 9 seconds

So SCH E for rental portion and form 85852 for losses

Resolved Question:

So SCH E for rental portion and form 85852 for losses
Submitted: 6 years ago.
Category: Tax
Expert:  RD replied 6 years ago.

RD :

Yes, sch E is for rental income and expenses reporting. Any loss from Sch E (being rental loss) will be reported on form 8582 and from there (subject to the limitations) will be reported on Form 1040 and offset against your other income.

RD :

Note that- regarding rental property losses-


If you own income property and actively participate in the management of the property and your adjusted gross income is less than $150,000, you can write off up to $25,000 in rental losses. However, the deduction is subject to phase out. For an adjusted gross income of $100,000 or less, you can write off $25,000 in rental losses. The amount of rental losses that you can write off is proportionately phased out between $100,000 and $150,000. For example, if your adjusted gross income is $125,000, you can write off $12,500 in rental losses in the year of the loss. If you are an active participant and your adjusted gross income is $150,000 or more, you can write off no rental losses on your tax return in the year of the loss but you can carry it forward.

RD and 4 other Tax Specialists are ready to help you