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xww0701
New Member

Why my net negative income from rental property is not affecting the total income? I have a net loss from rental property of 10000, but the net income was not affected.

I think the netincome should be reduced by 10000, however the online version did not. Is this a bug?

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1 Best answer

Accepted Solutions
Anita01
New Member

Why my net negative income from rental property is not affecting the total income? I have a net loss from rental property of 10000, but the net income was not affected.

Even for active participants, the maximum loss you can take is $25,000 per year.  That amount declines as your other income hits $100,000, and reaches zero at $150,000 in other income.  At that point, any loss for the year is carried forward until such time as the property is sold in a fully taxable sale.  

If you are Married Filing Separately, no loss is allowed if you lived with your spouse at any time during the year and only $12,500 maximum if you lived apart all year and met all the other conditions.

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3 Replies
Anita01
New Member

Why my net negative income from rental property is not affecting the total income? I have a net loss from rental property of 10000, but the net income was not affected.

Is your total income other then the rental $150,000 or more?  Was the property rented at fair market all year?Were you active?
xww0701
New Member

Why my net negative income from rental property is not affecting the total income? I have a net loss from rental property of 10000, but the net income was not affected.

Thanks for your answer. The total income is above $150,000. I was active participant, but when it asked me whether i was real estate professional, i said no.  The property was rented at fair market price. It was rented for 249 days, and was vacant for a few months. I believe in the question of how many day it was rented at fair market price, I indicated 320 days, which is the length of time the house is available for rent.
Anita01
New Member

Why my net negative income from rental property is not affecting the total income? I have a net loss from rental property of 10000, but the net income was not affected.

Even for active participants, the maximum loss you can take is $25,000 per year.  That amount declines as your other income hits $100,000, and reaches zero at $150,000 in other income.  At that point, any loss for the year is carried forward until such time as the property is sold in a fully taxable sale.  

If you are Married Filing Separately, no loss is allowed if you lived with your spouse at any time during the year and only $12,500 maximum if you lived apart all year and met all the other conditions.

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