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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 3925
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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Who said owning rental property was a tax savings choice.

Resolved Question:

Who said owning rental property was a tax savings choice. We are working on our taxes and can't deduct the losses of our rental house we rented last year. Our Adjusted gross income ia 156000 and we aren't allowed the loss deduction. So does that mean when we sell the house will we have to add back the Dep allowance, even though we weren't allow any losses, that seems like I screwed. And what if our income should drop below 150,000 in the next fews years can i go back and claim those losses.
Submitted: 3 years ago.
Category: Tax
Expert:  Stephen G. replied 3 years ago.

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.

Stephen E. Grizey :

You'll be able to claim the losses if your income drops below the 150K or when you sell or dispose of the property; you have what we call suspended passive losses.

Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 3925
Experience: Extensive Experience with Tax, Financial & Estate Issues
Stephen G. and 6 other Tax Specialists are ready to help you
Customer: replied 3 years ago.
Since our combined income is 156000, and my husband stays in another house that we owe during the week should we consider filing separate? If we both keep a child as a dependent could we both file as head of household?
Expert:  Stephen G. replied 3 years ago.

You would have to run the numbers, but it is unlikely that your tax would be lower as you would have to file using Married Filing Separately
filing status. Also, certain things aren't deductible, limits are different, etc. The rental loss would still be a problem, as well as dividing things up; anything you hold jointly would have to be split 50/50.

To use Head of Household, you have to be unmarried.

I'm afraid you're pretty much stuck with filing jointly.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 3925
Experience: Extensive Experience with Tax, Financial & Estate Issues
Stephen G. and 6 other Tax Specialists are ready to help you

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