If you have an adjusted gross income of $100,000 or less (not counting anyloss from "passive activities," several adjustments to adjusted gross income or taxable Social Security benefits), you can deduct up to $25,000 in losses from rental real estate against income from other sources. This is an allowable deduction if you owned at least 10% of the property and "actively participated" in its management (for example, if you chose the tenants and approved outlays for maintenance). If your adjusted gross income is between $100,000 and $150,000, you can still deduct some or all of your losses from rental real estate, depending on the amount of the loss.
Don't forget, if any rent losses were "suspended" in prior years, they are fully deductible in the year the property is sold. |
