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LIMITED PARTNER IN A BUILDING AND i JUST RECEIVED THE K-1…

i AM A LIMITED PARTNER...
i AM A LIMITED PARTNER IN A BUILDING AND i JUST RECEIVED THE K-1 FOR THIS ENTITY. IT SHOWS ON LINE 2
A LOSS OF 45,000 RENTAL REAL ESTATE.
CAN I DEDUCT THE FULL AMOUNT OF 45,000 AGAINST MY INCOME OR IS THERE A LIMIT AS TO THE AMOUNT I WILL BE ABLE TO DEDUCT BECAUSE I AM NOT MATERIALLY ACTIVE IN THIS BUSINESS. IF THERE IS A LIMIT, HOW MUCH IS THE LIMIT AND CAN I CARRY IT FORWARD TO NEXT YEARS. IF YOU CAN HOW MANY YEARS CAN YOU CARRY IT FORWARD
NEXT YEAR, THERE WILL PROBABLY BE A LOSS AGAIN BECAUSE THE DEPRECIATION IS SO LARGE. WILL I BE LIMITED IN THE AMOUNT I CAN SHOW AS A LOSS NEXT YEAR BECAUSE AT THAT POINT MY BASIS WILL BE NEGATIVE. FOR THE CURRENT YEAR , I INVESTED 50,999 ANSD MY LOSS IS 45,000
I HOPE I AM MAKING MYSELF CLEAR
THANK YOU
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Answered in 1 hour by:
3/28/2018
James Daloisio
James Daloisio, Tax Attorney
Category: Tax
Satisfied Customers: 738
Experience: 24 years of continuing education and experience.
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Hi, my name is ***** ***** welcome to Just Answer.

If your modified adjusted gross income (MAGI) is less than $100,000 you will qualify for a deduction of up to $25,000 of rental losses against normal income. As your MAGI begins to exceed $100,000, the amount of your deduction decreases until your MAGI reaches $150,000, at which point it's gone completely. The deduction is decreased by $1 for every $2 that your income exceeds $100,000. You can still deduct up to $3,000 in passive losses from your normal income, and you can carry forward this loss to use against passive gains in future years. Passive activity losses may be carried forward until they’re allowed either (1) against passive activity income, (2) against the special allowance, if applicable, or (3) when you sell or exchange your entire interest in the activity in a fully taxable transaction to an unrelated party.

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James Daloisio
James Daloisio, Tax Attorney
Category: Tax
Satisfied Customers: 738
Experience: 24 years of continuing education and experience.
Verified
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