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Investors & landlords
You can add the acquisition expenses to your basis so they can be deducted as a depreciation expense even if they were paid in 2023. Just be sure to keep the detailed records with your tax records.
Real estate losses, in general, are considered passive activity losses; so they can only be used to offset other passive activity income (for example, if you had other rental properties with income your losses could be used to reduce that income). They do carry forward so when you sell the property, you will have be to use the losses to offset any taxable gain on the sale of the property and it can be then used against other income as well. There is a limited $25,000 loss if your adjusted gross income is less than $100,000. (See Special $25,000 allowance.)
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