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caahvrai1
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Real Estate losses

I have rental property and have filed single for the last 10 years and have deducted my losses. I married last year and turbo tax doesn't seem to allow me to deduct my losses. This is correct?

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Real Estate losses

The Special Rental Real Estate Loss Allowance is based on income, not marital status. Your joint marital income may be too high for the deduction, whereas you qualified under a single income. The income limit is same for single or married taxpayers (unless filing separately).

 

If you or your spouse actively participated in a passive rental real estate activity, you may be able to deduct up to $25,000 ($12,500 if married filing separately) of loss from the activity from your non-passive income.

 

The deduction begins to phase-out between $100,000-$150,000 ($50,000-$75,000 if married filing separately) and is suspended after that, meaning the loss is not deductible but is carried forward.

 

Exception for Rental Real Estate With Active Participation

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