Can I pass through my business loss to my W2?

[wseanxy]

Hello,

I have a W2 job and also I am an owner (one out of two) of a partnership company which does property rental business.

The business needs a vehicle. 

So my first question is: Could the business loss offset my W2 income?

My second question is: If I buy a vehicle over 6000 lbs for the business, can I write it off using Section 179? If the business loss can be passed through my W2 income, does it mean I can write off the vehicle cost from my W2?

My third question is: Do I need to use the Premier version or Home&Business version? 

Thank you.

[Anonymous_]

In order to enter information from a K-1, you will need the Premium version if you're preparing the return online (and note that you can use any desktop version).

What type of "property rental business" is involved here? It makes a difference as to whether this is an actual business or a passive activity.

[wseanxy]

Currently, it is passive income as I just rent the properties out.

But I am getting a real estate agent license. Once I have the license, I can go represent the clients. Would that make a difference?

Also, if I work as an real estate agent part time, is it still eligible for section 179?

Thank you.

[Anonymous_]

If you are earning commissions (or other compensation) as a real estate agent, then that would make a difference. 

Otherwise, the rental income is passive and it would not make a difference unless you were a real estate dealer, provided significant services to your renters, or qualified as a real estate professional who materially participated in your rental activities.

[wseanxy]

Thank you very much!