Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-23-2015, 10:22 PM
Junior Member
 
Join Date: Feb 2015
Posts: 1
Special Passive Activity Rules Questions-Married

I'm confused about this. I asked our accountant and since I'm new to rental thought I would do more investigating before asking dumb questions~ at least here I think someone might be able to help explain it to me in plain English.

1st part of my question:
Example: You and your spouse meet all of the requirements and have a $10,000 loss. The $25,000 limit means that you have $15,000 remaining before maxed at the limit. The following year, you incur another $10,000, do you only have $5000 left that you are able to deduct and then the ability to use this deduction when there are losses is gone?

Does it change your ability to depreciate your rental property at all?

2nd: I don't understand exactly what it means to offset rental income AND other types of income. Does this mean for example from a Schedule C- business or income from a regular job that we pay taxes on? Am I reading this totally wrong?

Like I said, I'm confused and would like to learn more about how this works.

Example: Rental in service Oct. 2014. Loss of $4500 2014 for expenses & major renovations. No rental income for this year, ready but not able to find tenants during winter months.

Property is rented starting in April 2015. Next year projected rental income $7000.
Depreciation/expenses $6000 next year plus expenses incurred before rental in April 2015.

Don't want to miss out on this if it is something we should be taking advantage of. (Worse yet, something we should have taken advantage of this year)
Any help GREATLY appreciated!


Last edited by RitaR : 02-23-2015 at 10:24 PM. Reason: no poll


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Passive activity loss carry over nbalu1974 Rental Real-Estate 1 02-23-2014 06:41 AM
rehab credits, passive activity and self rental Jlee Rental Real-Estate 0 10-15-2013 06:41 PM
How can a taxpayer show material participation in a business activity and avoid passive loss limitation rules? TaxGuru Rental Real-Estate 0 01-31-2012 08:26 PM
What is the Impact of a Passive Activity classification? TaxGuru Rental Real-Estate 0 01-21-2011 02:18 PM
Deducting Passive Activity Losses workout Rental Real-Estate 1 02-07-2009 11:03 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning