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Investors & landlords
I am not familiar with any type of 10% limit. Perhaps, he was speaking of a concern over audit risk.
More importantly, you need to be careful of what you are expensing. Improvements need to be put on a depreciation schedule while repairs are an expense.
Your passive activity rental real estate loss will be capped at $25k regardless of what you write off. However, it can be carried over to future years.
‎June 4, 2019
10:36 PM