My wife and I elect to be treated as a qualified joint venture. Among the activities in our joint venture is a real estate property with losses. Can these passive losses can be used to offset income in the joint venture? I only ask because ...
this mentions something about real estate -> https://www.thebalancesmb.com/what-is-a-qualified-joint-venture-398426
as does the IRS -> https://www.irs.gov/instructions/i1040se
However at the bottom of the IRS page it states:
Rental real estate income generally is not included in net earnings from self-employment subject to self-employment tax and generally is subject to passive loss limitation rules. Electing qualified joint venture status does not alter the application of the self-employment tax or the passive loss limitation rules.
Thanks!
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Passive losses can only offset passive income, until you dispose of the rental property. The exception is the special $25,000 allowance.
This IRS Publication 925 website provides details about passive activity losses.
Passive losses can only offset passive income, until you dispose of the rental property. The exception is the special $25,000 allowance.
This IRS Publication 925 website provides details about passive activity losses.
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