CPA - Tax Consultant Recommendation

[Abhi Patel]

Hi All- This is my first year in real estate investing and i have bought 4 properties this year spending roughly 30-40K in each of the properties for rehab. Can anyone please suggest me if i can offset that spending against my W2 income (>200K)? I’m putting al those properties on long term rentals. I understand you may not be tax expert but any general guidance will be appreciated. 

Additionally will take any CPA recommendations? Looking to find someone who works with real estate professionals.

[Nate Meeker]

@Abhi Patel - You can deduct up to $25,000 in passive losses (Rentals) against your ordinary income (W-2) and other active business income if your modified adjusted gross income (MAGI) is $100,000 or less.

This deduction phases out $1 for every $2 of MAGI above $100,000 until $150,000 when it is completely phased out. These numbers are for married filing joint couples. For single individuals it phases out $1 for every $2 of MAGI above $50,000 until $75,000.

This sounds like it doesn't apply to you so you will need REPS. Don't worry, the losses will carry forward.