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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..
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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.

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