turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Event: Ask the Experts about your refund > RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Is there a workaround to allow real estate investment property losses with an income above the allowed limit of $150k?

We had $40k of losses on a newly purchased cabin. It has rented well on AirBnB but we still had some significant losses. We're trying to figure out how to take advantage of these losses on our taxes.
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

4 Replies
DavidD66
Expert Alumni

Is there a workaround to allow real estate investment property losses with an income above the allowed limit of $150k?

No, there is not a work around that allows you take a loss on rental real estate if your AGI is above $150,000 and you don't qualify as a real estate professional.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Is there a workaround to allow real estate investment property losses with an income above the allowed limit of $150k?

Thanks for the help. What if we have an LLC that we are running our rental unit through? Only one rental unit, no other income or activity goes through the LLC. Does that change anything?

DavidD66
Expert Alumni

Is there a workaround to allow real estate investment property losses with an income above the allowed limit of $150k?

No, the LLC does not change anything.  It does not change the nature of the real estate loss.  The general rule is that you can't take a passive activity loss.  It is an exception to the rule that allows you to take up to a $25,000 passive loss on rental real estate, if your modified adjusted gross income is $100,000 or less (phased out at $150,000).  There aren't any exceptions to the exception.      

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Is there a workaround to allow real estate investment property losses with an income above the allowed limit of $150k?


@5470689 wrote:
We had $40k of losses.

It has rented well on AirBnB 

 

A $40,000 loss is very high.  How did such a high loss occur?

 

Was the average stay 7 days or less?  Did you "Materially Participate" in the rental?  Was there any personal use?

 

https://www.irs.gov/publications/p925#en_US_2022_publink[phone number removed]

 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies