Question

Can I carry over rental property deductions to next year if I make over 150k?

Forum|Forum|7 years ago
June 4, 2019
1 reply
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I assume I am not eligible to take the deduction this year, but if I make rental income next year and have no expenses, can I use this years deduction (that I did not get credit for because of income) and not have to pay taxes on rental income next year?

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Employee

With income in excess of $150,000 you can deduct expenses, but you cannot take a loss on the property, as this is classified as a passive loss. So your deductions are limited to your income from the rental. Tax law limits these losses.

However, unused losses do carry forward and can be applied to future years. If you sell the property, you can write-off any unused rental losses that have accumulated while you have owned the property. . So, you do get the losses, but they are deferred.