I have a 17K loss on rental property due to depreciation mostly but still do not see its impact on my taxes? why?

sberi — Mon, 03 Jun 2019 19:05:03 GMT

The most likely reason you're not seeing an impact on you...

DDollar — Mon, 03 Jun 2019 19:05:08 GMT

The most likely reason you're not seeing an impact on your taxes is your Income level.

If you have a loss from your rental real estate activity, two sets of rules may limit the amount of loss you can deduct. You must consider these rules in the order shown below.

At-risk rules. These rules are applied first if there is investment in your rental real estate activity for which you are not at risk. This applies only if the real property was placed in service after 1986.
Passive activity limits. Generally, rental real estate activities are considered passive activities and losses are not deductible unless you have income from other passive activities to offset them. However, there are exceptions.

If you or your spouse 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. The maximum special allowance is:

$25,000 for single individuals and married individuals filing a joint return for the tax year,
$12,500 for married individuals who file separate returns for the tax year and lived apart from their spouses at all times during the tax year, and If your modified adjusted gross income (MAGI) is $100,000 or less ($50,000 or less if married filing separately), you can deduct your loss up to the amount specified above. If your MAGI is more than $100,000 (more than $50,000 if married filing separately), your special allowance is limited to 50% of the difference between $150,000 ($75,000 if married filing separately) and your MAGI.

Generally, if your MAGI is $150,000 or more ($75,000 or more if you are married filing separately), there is no special allowance and you cannot deduct your loss.

For more information, see IRS Pub 527 - Residential Rental Property

topic I have a 17K loss on rental property due to depreciation mostly but still do not see its impact on my taxes? why? in Investors & landlords

I have a 17K loss on rental property due to depreciation mostly but still do not see its impact on my taxes? why?

The most likely reason you're not seeing an impact on you...