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February 7, 2024
Question

Rent

  • February 7, 2024
  • 1 reply
  • 0 views

I rent a room out in my home. And I have a small mineral rights royalties. I feel my rent I charge is below fair market. Can I use my losses on the rental to offset my w2 wages? Am I excluded from the loss limitation rules. Am I an active participant?

1 reply

Carl11_2
Employee
February 7, 2024

If you are renting below FMV, then you can only deduct up to the amount of your rental income, and that's it. Excess expenses can not be carried over to next year. You just lose them permanently.