Rentals

[Duane Anderson]

I have a client (MFJ) who has five rentals but is unable to deduct any of the losses because their income exceeds $150,000. Would they be able to deduct any losses if they incorporate the rental business? My understanding is that they can and be able to deduct up to $25,000 per year. Thanks,,,,Duane Anderson

PS...Incorporation is probably a good idea to limit their liability and protect their personal assets, anyway !

[Gary2]

I have a client (MFJ) who has five rentals but is unable to deduct any of the losses because their income exceeds $150,000. Would they be able to deduct any losses if they incorporate the rental business? My understanding is that they can and be able to deduct up to $25,000 per year. Thanks,,,,Duane Anderson

PS...Incorporation is probably a good idea to limit their liability and protect their personal assets, anyway !

Putting it into an LLC may be a good idea. Putting it into a corporation (or even an LLC that chooses corporate treatment) is generally regarded as an awful idea. Try doing a web search on "never put real estate into a corporation", which will get results that can explain this far better than I can.

Note that corporate treatment couldn't achieve what you suggest in any case. The loss won't pass through a C-corp, and with S-Corp treatment, it would still be a passive loss subject to limitations.