KK
Lifer
- Jan 2, 2001
- 15,903
- 4
- 81
I'm not contesting that the income has to be reported, I'm merely disputing that he has multiple options. Assuming he's not a real estate professional, it would go on Schedule E. Since he's mostly likely selecting tenants and settings terms and what not, he's actively participating (differently from materially participating). This would enable him to deduct up to $25,000 in losses each year assuming his MAGI is below $150,000. Otherwise, these losses will accumulate on Form 8582 til he has either passive income or disposes of the property.
Not a real estate professional, unless that will benefit me. The wife knew the lady that moved into the house, whats the actively participating vs. materially participating. It is understood that the tenant will take care of the little things, and anything major, I'm sure we would be notified. In this roll can a claim a loss? If not, if say I go over there a few times and spray for bugs, would that change the claiming a loss ability.