But the main point to keep in mind is that if your income is under $100,000, then up to $25,000 of losses can be used (assuming you "actively participate", and the $25,000 gradually gets phased out as you income gets up to $150,000). With multiple rentals (like you), that may be 'maxed out', but most landlords with one or two rentals would not max that out. That means in MOST cases, a larger deduction WILL save taxes on the current tax return. And even if it does need to be carried forward, EVENTUALLY that can be used.
