@Hal_Al wrote:
Q. So for next year return can I file schedule C and offset the profit against my Schedule E loss?
A. Simple answer: Yes.
There really is no simple answer, but losses from residential rental real estate are subject to the passive activity loss rules and passive losses cannot be used to offset ordinary (nonpassive) income.
There is, however, an important exception for active participation if a taxpayer's modified adjusted gross income is within certain limits.
See https://www.irs.gov/publications/p527#en_US_2022_publink1000219124
