San Diego Property Management & Real Estate
Passive Losses on Rental Property & How They Relate to San Diego Real Estate Rentals
The impact of passive losses on rental property will depend on how much you earn. The general rule is that if you earn over $150,000 per year, you have to take a passive loss. So, if you have a rental property that incurs a $10,000 rental loss, you aren’t eligible to deduct that loss if your modified adjusted gross income, which is the last line on your tax return, is over $150,000.