Question

Rental property isn't profitable. Mortgage int., taxes, expenses is more than rental income. Tax due did not decrease with rent data.How do I capture loss appropriately?

Forum|Forum|5 years ago
April 26, 2021
1 reply
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Schedule E from prior years shows the loss. This year there is a loss as well but my taxes due did not lower like they did last year. Does gross income/net income for play a factor in rental property losses? Aside from the Schedule E, is there another form to complete for rental property losses?

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M

Mike9241

if you are adjusted gross income is more than $150K you are subject to passive loss limitation. this means you get no current tax benefit from your rental loss. as long as AGI remains over $150K you will continue to get no benefit until you sell in a taxable transaction. for computation of the limitation look at form 8582.