Rental Losses

[Chief]

A couple who live in a mobile home in a park own and rental the mobile home next door. They are retired. In 2007 the home was not rented for 6 months and sat vacant. They are not realtors. Are they allowed to deduct the loss of this rental income or must the loss be carried over to a year in which they have income? The management of the rental property is done by them.

[solomon]

If the mobile home was available for rent and was being advertised as such, then under 212 the expenses can be deducted.

[Chief]

Thanks

Solomon, I thought so. I always doubt myself.