We have a small rental, that brings in some positive cash flows. But after considering depreciation, it becomes net loss. We are not able to deduct the rental loss in the same year to our ordinary income. As the year goes, I assume we will have some additional rental net loss (b/c of depreciation). In a year or 2, we expect to receive K1 from one of the PE funds we invested in, it will very likely be an income. My specific question, is whether the carry forward rental losses can be used to offset the K1 income. And does it make a difference that the rental loss is coming from the depreciation?
Many thanks to your advices ahead of time!
