Investors & landlords

The following is an (admittedly crude) example of what I am referring to.

 

Rental income = $10,000

Commissions = $4,000

Mgmt fees = $4,000

Advertising = $4,000

 

The foregoing would result in a $2,000 loss and that loss would be nonpassive as all of the expenses creating the loss are related to rental use.