How does getting married affect rental properties?

[man21]

Hello. I am a single man living in California with several out-of-state rental properties. On my tax return each year (filing as single), I have been getting rental property deductions (e.g. depreciation, property tax deduction, mortgage interest deduction).

I will be getting married later this year and when I file tax next year I will be filing as "married filing jointly" instead of "single". How will my marital status affect my rental property deductions? What will I need to do differently on my tax return next year?

[Mike9241 · Accepted solution]

will your spouse have any income because PAL's on rental properties are limited to $25,000 but only if modified adjusted gross income is $150,000 or less go over and no loss is allowed. of course, if you have no losses then getting married will change nothing with regard to your rental properties for tax purposes.  we can't see your return or know your personal situation so making tax recommendations would be inappropriate.   i will say that generally filing a joint return is better than filing married separately. 

[man21]

Thanks for the info.

My AGI is about $75,000. My (future) wife's AGI is about $150,000. How will this affect my rental property deductions?

Also, I have a passive loss carryover of almost $50,000. Will this passive loss still apply or be able to carryover after my marital status changes from "single" to "married filing jointly" next year?

[Carl]

Passive loss carry overs are not lost, unless you die. (then it won't matter)

You just can't realize those passive carry over losses until the tax year you sell the property.