Client purchased a dozen rental properties in 2006 and had rental losses of $32,000. Since losses are limited to $25,000 per year, can the additional $7,000 in losses be carried over to the 2007 tax return? Also, should client consider electing to be a real estate professional in this case? The client is a real estate agent earning a W2 and also a 1099 for comissions and spends a great deal of time on the rental properties. Any thoughts?