Investors & landlords


@MIRIAM GUEVARA wrote:

can i claim rental property if I file married filing separetley

 


If you or your spouse actively participated in a passive rental real estate activity, you may be able to deduct up to $25,000 of loss from the activity from your nonpassive income.  This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities.

 

Maximum special allowance. The maximum special allowance is:
• $25,000 for single individuals and married individuals filing a joint return for the tax year,
• $12,500 for married individuals who file separate returns for the tax year and lived apart from their spouses at all times during the tax year, and
• $25,000 for a qualifying estate reduced by the special allowance for which the surviving spouse qualified.


If your modified adjusted gross income (MAGI) is $100,000 or less ($50,000 or less if married filing separately), you can deduct your loss up to the amount specified above. If your MAGI is more than $100,000 (more than $50,000 if married filing separately), your special allowance is limited to 50% of the difference between $150,000 ($75,000 if married  filing separately) and your MAGI.
Generally, if your MAGI is $150,000 or more ($75,000 or more if you are married filing separately), there is no special allowance.

 

IRS Publication 527, Residential Rental Property - https://www.irs.gov/pub/irs-pdf/p527.pdf