Having a loss on a rental is technically a good thing because it can offset future profits, is that correct? Are there any disadvantages (other than I'm actually making a loss in my case 🙃)?

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

Make less money and you’ll owe less in taxes.

Minblowing. I know.

funny

If it’s suspicious, it’ll trigger an audit

like

If I was renting the (otherwise Primary) house only for the last year before selling on a loss, would those capital losses be tax deductible?

We call it tax loss harvesting

The tax code is written to benefit 1) farms 2) real estate

It can counteract your gains on other forms of capital for tax loss harvesting. But the idea is you’d have gains somewhere else in life. If you’re talking about depreciation, read up on depreciation recapture for some fun

Lol 😂 🤡 - on what planet is taking a financial loss “a good thing”?

My tax firm just explained to me that I'm not going to be able to carry forward my loss because you can only carry forward Schedule E loss if you (1) have an AGI less than 150k or (2) are an S or C Corp.

Yes, that's what he told me.

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