Client lives in NY and has rental property in Fla. This is first year that clients income from his and wifes W-2"s exceed 160K. He has loses on the rental property of 7K. Am I missing a way to deduct these loses?
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I assume that you are referring to the Passive Activity rules for real estate losses.
As far as I know you must deal with the Passive Activity rules unless the taxpayer qualifies as a "Real Estate Professional". -
Correct. That is what I was referring to. Is there another opportunity I am missing?Comment
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Either make them real estate professionals or the return generates the 8582 PAL worksheet & they can use the unallowed losses in the future theoretically.Comment
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"Make" them real estate professionals?
No offense intended Y2KEA, however, from the facts as shown by railtax on this thread, the client doesn't seem to qualify as a real estate professional. As such there is no "making' them to be something they aren't.
The passive loss from FL will be carried forward to future years and allowed when the client's AGI falls beneath the future year's AGI threshhold.
Railtax, you'll need form 8582 for 2007 and future years until the PAL is fully absorbed.Comment
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Amen to that!
I lost a client last year over this issue...Goodbye to them, their income rose, they lost the losses...They owed taxes!! They paid me (right thing to do) and told me they were going to someone else they spoke to, who promised they could fix it for them...Funny thing is, the way I got the clients was because someone "FIXED" their taxes before, and they got audited and owed big time...They were pointed in my direction as someone who would do their returns correctly...Oh well...Originally posted by ovalhed View PostComment
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