Hello,
I have a rental property that always generated a loss in the previous years (mortgage interest, depreciation, expenses, ..) . However, after putting in the numbers this year, the expenses field matches the rental income and the overall result is zero.
My MAGI is below $150K although it is over 100. Why are there no losses allowed?
Did you indicate in the property profile section that you actively participate? If you 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.
So your passive losses up to $25,000 in excess of the passive income, were deducted from your "other ordinary" income, leaving no more losses to carry over, apparently.
Did you enter any personal use days for the rental?
Is Line 20 of Schedule E equal to the 3 of Schedule E?
I did! We spent several weeks there remodeling. I included all that time in personal use days. I assume that is a no go?
OK, that was my mistake to put too many "personal use days" where those days included fix-up days
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5. If you limit your personal use to 14 days or 10% of the time the vacation home is rented, it is considered a business. You can deduct expenses and, depending on your income, you may be able to deduct up to $25,000 in losses each year. That's why many vacation homeowners hold down leisure use and spend lots of time "maintaining" the property; fix-up days don't count as personal use.
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