Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-07-2009, 01:14 PM
Junior Member
 
Join Date: Mar 2009
Posts: 2
Real estate professional offsetting Real Este losses against spouse's W-2 income

I own significant number of rental properties and earn income on them. My wife and I earn W-2 income. I am working on becoming Real Estate Professional (Broker) this year. As a real estate professional Can I offset Losses on my real estate properties against my spouses W-2 income? I have accumulated passive losses from past 3 years that is currently can not be offset against my W-2 income or my wife's W-2 income, as I am not a real estate professional yet.
Thanks.



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
  #2 (permalink)  
Old 03-08-2009, 01:40 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,400
Blog Entries: 3
If your combined adjusted gross income <$150,000, you are entitled to deduct passive losses. 0therwise if your combined adjusted gross income is in excess of $150,000 your passive losses generated from your rental properties are non deductible and instead are considered suspended to future years.

In the future years if your adjusted income drops below the $150,000 then these losses become unsuspended and you may be able to deduct these passive losses.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


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
  #3 (permalink)  
Old 03-08-2009, 01:49 PM
Junior Member
 
Join Date: Mar 2009
Posts: 2
Quote:
Originally Posted by TaxGuru View Post
If your combined adjusted gross income <$150,000, you are entitled to deduct passive losses. 0therwise if your combined adjusted gross income is in excess of $150,000 your passive losses generated from your rental properties are non deductible and instead are considered suspended to future years.

In the future years if your adjusted income drops below the $150,000 then these losses become unsuspended and you may be able to deduct these passive losses.
THis question is specifically pertaining to 'Real Estate Professional". Who ever answered this question answered for a person with less that 160K income for non-real estate professional.

Assumption: I am a real estate professional. I incurr 500,000 losses on real estate properties. Can it be offset against my wife's income? (Assumption my wify's income is equal to greater then losses. If not can we accumulate the passive income exceeding my wife's income?)
THanks



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
Real Estate Investors kgiebel Rental Real-Estate 0 03-03-2009 07:59 PM
Who gets to itemize real estate items? rpkesterson Divorce Tax Issues 1 01-28-2009 12:03 PM
When can an Individual offset real estate losses against other income? Mandy Rental Real-Estate 0 01-06-2009 11:16 PM
real-estate tax question NY and Texas Eimen Rental Real-Estate 1 03-31-2007 12:04 AM
Real Estate Commissions InTheWindyCity Miscellaneous 1 01-18-2007 12:29 AM

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