Posted by Joe C. (AR) on February 05, 2003 at 01:36:38:
I have always used “TURBOTAX” and my losses were always deducted. I suspect your problem has some thing to do with your selection of “active” or “passive participation” in the property management. Your best bet is to get a 1040 booklet for 2002 and look under schedule E instructions. That’s where you’ll find the guidelines. Maybe your tax software has the schedule E instructions in a “help” section.
There are some limits as to how much losses can offset other “earned income”. For the last few years it was $25k. I don’t know what it is this year. I have just ordered “TurboTax Premier” touted as being tailored to rental/RE income ($59.95), so I can’t look it up for you at present.
Joe C. (AR)
Why Aren’t my RE Losses Tax Deductible? - Posted by FrankIL
Posted by FrankIL on February 04, 2003 at 20:54:18:
Anyone out there know there know the formula for calculating deductible rental real estate loss? Preparing my taxes tonight…incurred -$7000 in losses in RE last year yet the tax software I’m using is automatically entering ‘0.00’ for the final tax write-off - also referred to as ‘Deductible Rental Real Estate Loss’.
If your AGI is greater than $150m then you’ll have to carryforward the losses, assuming your not a real estate professional. If this is not it, then you need to redo your taxes or look carefully at how you answered a question in the tax software. post a follow up