Anyone knows if 25,000 passive activity loss can be taken against and offset w2 income if i have a rental property and manage it myself for the most part?

like
Posting as :
works at
You are currently posting as works at

If it’s a long term rental (average stay is more than 7 days), then no. PAL can’t be used to offset earned income.

like

Google says the below -
If you are actively managing the rental and earn under $150k then you may be able.

Reading IRS regulations is usually best on their own website. It will take about an hour, you should do it.

***********

The $25,000 Special Allowance (Active Participation): If you "actively participate" in the management of your rental property, you may be able to deduct up to $25,000 of your rental losses against your ordinary income.
Requirements: You must own at least 10% of the property and be involved in making management decisions (e.g., approving tenants, setting rental terms, authorizing repairs).
Income Limits: This allowance begins to phase out if your Modified Adjusted Gross Income (MAGI) is between $100,000 and $150,000, and is eliminated entirely above $150,000.

This is one of those times when getting an accountant is a good idea. You're asking for anonymous tax advice.

like

Even if you can’t take the loss it can be carried forward. (We are over the income limits and have used carry forward losses for years when rentals have done well)

Related Posts

Hi guys,

What is average yearly increment in Persistent?

Hi, I'm an employee at a hotel chain who works remotely. I've been working remotely for over a year now and I love it! The company I work for is very supportive of remote workers, which is great.

But there's one thing that's been bothering me: it's hard to get feedback on my work when I'm not in the office. It would be great if there was some kind of system that let me know how my performance was being evaluated while I'm working on projects from home.

like

When FAANG companies are hiring for UX Design positions do they count all of your general design YOE or only the YOE in a UX role ?

like

Completely burnt out. I've been on high burn engagements, but this is different. It's not the hours but just working in a constant state of disruption. Any tips on how to keep going forward

like

Is Credit Suisse, Pune starting 100% work from office? Or is it hybrid?

Anyone recently left Ibm..how did you returned your laptop

like

How do I train my critical thinking skills? Any book recommendations?

like

Anyone got onboarding today 19th Oct 2022..? Bangalore location..?

like

Dating my guy for 6 months now and he’s just such a lovely soul but I’m not physically attracted, there’s no spark and I’m afraid to let go but also afraid to keep holding on..

like

Why do we call reality TV reality, if it really isn't reality?

like

MBB folks, I’m a Product Manager (non-tech company) and interested in working at MBB.

Which level/role does MBB can offer me ?

like

Anyone left in this bowl? It’s been so quiet

like

What level of Amex earns points?

like

Any Boston weekend activity recommendations? Just moved here for school and looking for ideas!

like
like

Why do recruiters never tell you which agency they want to talk to you about until they get you on the phone? I don’t want to waste anyone’s time and it would be helpful to know this info from the initial outreach. My experience with this only applies to healthcare, but would imagine it’s the same in consumer as well. Anyone?

like

How much pull does the recruiter have when deciding who will speak to the hiring manager ?

like

Thoughts on Deloitte’s M&A Human Capital practice? Thought on Strategy& organization strategy? Should I expect case studies fir Strategy&? Any tips would be helpful.

like

Hourly pay rate

like

I am a new joiner at Capgemini. In which portal I can view my salary details? Capgemini

like

Additional Posts in FIRE Financial Independence Retire Early

Have 20k, what’s a good small business to start with this fund? Serious question here

like

Which is the best brokerage to get into Pre-IPO?

like

Still using Ally Bank savings account, but the APY had dropped to .60%. Time to move. Any recs on personal savings account? This is my emergency “savings”

like

Anybody using Marcus high yield savings? 1.9%APY seems like a no brainer, just want to be sure I’m not missing anything.

like

FIRE newbie here. Is it possible to reach FIRE with a special needs kid? Has someone done it? Are there any alternatives to fund therapies beside insurance?

like

What are some aggressive ways to control your spending? I tried a little but of everything(paying myself first, only debit cards,cash) but seems like i have the urge to spend and i do so. Any tips?

like

Sharks! I’m 33, currently working as a Java Architect (11.6 YOE, 40 LPA INR). I’m planning for retirement at my 40. Currently owning a house worth 1 Crore INR where I’ll be closing my home loan by this August. Please suggest diversified options of Investment for my retirement. I don’t have any investment till now (except the house) as I used my whole income to close off the Loan which I took in 2019.

like
likeuplifting

I’m not bad with money but definitely lots of room to improve overall, due to several personal factors I don’t want to list in full here (numerous unanticipated medical bills, bad boyfriends, etc.) Hence why I only have $3k in savings right now. My first mini goal is to have $5k saved by the end of December. I need motivation and words of encouragement. If I pay off my medical bills, I won’t make my goal. I have to start putting saving money first. Getting depressed about my situation.

like

Thoughts on potential business ideas or investment opportunities where I can live the life I deserve now and not in retirement? I’m always trying to think of potential business ideas and come up with nothing. As far as interests, it doesn’t matter what it is. As long as it makes money I’m interested.

like

For any real estate investors

22 years old and currently focused on using my left over income to invest and pay off my debt. I am set to pay off my college loans by next year and, when I do, I want to look into investing into real estate. Does anyone have any suggestions on how to get into/learn more about real estate investing? Or how I can have enough knowledge on the topic to be able to invest wisely when the time comes?

Any books? youtubers? etc. How did you all learn about it?

like

Anyone know of a good cross-border US/UK financial fiduciary?

like

Feeling grateful & proud as I reached my goal ($50K by 25) 5 months early. But I can’t help feeling a bit overwhelmed. In the lifelong scheme of things, $50K doesn’t seem like much. I worked really hard and sacrificed a lot (including mental health) to get to this but it seems a little tiring knowing I still have so long to go. I recently moved out and in with my BF so my expenses are split, but nonetheless they are still expenses. Any tips on continuing this journey and keeping the drive?

Post Photo
likehelpfulfunny

im 27 and could possibly retire if I kept my spending low. However you never know what’s going to happen, do you? How do you deal with the uncertainty?

like

Anyone here over 70% in VOO or VTI? Is that a smart move for less-involved investor?

like

Currently 23yo with $65k in cash and $14k in student loan debt. Not sure what the best course of action is. What would you do?

like

My monthly salary is around $6.4k after-tax. Living in NYC. Do you think it’s reasonable that I pay:
- about $1.5k on rent
- about $500 on utilities and subscriptions
- about $900 on student loan
- about $2k on food and etc.
My saving goals is around $3k so been trying to adjust my monthly spending.

likefunny

What do most people invest in for their Roth IRA portfolio? I’ve heard target funds and ETF’s..which one is better?

I wish I wasn’t adaptable. Humans aspire for a greater level of comfort and once achieved, adopt that as their new baseline. Because of this, somebody making $100k cannot simply comfortably revert back to a $50k lifestyle. The slow growth of personal wealth isn’t noticed as ideated. Instead, we are never satisfied.

Can you relate? Has your salary / net worth growth dramatically improved your quality of life?

like

What is a good read/place to start with FIRE? I’m 28 and have 1k in my bank account and 110k in student debt. Making 65k but have had to spend most of my savings on medical issues recently :( I think that deluge of shit is going to end soon and I can go back to saving, but I don’t know what my next move should be. Any advice would be really appreciated.

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal