You don't need to enter his SSN on your return, only the amount of expense is recorded. Rentals are a passive activity and losses from passive activities can only offset passive income. The losses will carry to future years and you can use them when you sell or otherwise dispose of the property.
- Losses not allowed in the current year may be carried forward to future years.
- Modified adjusted gross income (MAGI) limits apply, capping the special allowance** at $100,000 or $50,000 for those filing as Married Filing Separately.
Passive Activity Losses
**There are a couple of exceptions to the passive activity loss rules that are designed for landlords. First, if you “actively participate” in a rental property activity, you might be able to deduct up to $25,000 of passive activity loss from nonpassive income, such as wages. However, the $25,000 amount is gradually phased out if your modified adjusted gross income is more than $100,000 ($50,000 if you’re married and filing a separate tax return).
Effect of Passive Activities Losses
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