How much can you claim in taxes not being a real estate proff

2 Replies

Hello everyone,

So, its tax time. I am just wondering, I've listened to the podcasts and heard something about real estate professional vs not... I know how that works however I would NOT be considered a real estate professional. How much can you claim for losses etc when you're NOT a real estate professional. I think I heard 25000 but am unsure.

Thanks for any input!

@Nicole Frawley

You may be able to claim $25,000 of losses if your modified adjusted gross income is below $100,000. The $25,000 allowable loss starts phasing out at $100,000 and completely phased out at $150,000.

Below is an example from the IRS website

Kate, a single taxpayer, has $70,000 in wages, $15,000 income from a limited partnership, a $26,000 loss from rental real estate activities in which she actively participated, and isn’t subject to the modified adjusted gross income phaseout rule. She can use $15,000 of her $26,000 loss to offset her $15,000 passive income from the partnership. She actively participated in her rental real estate activities, so she can use the remaining $11,000 rental real estate loss to offset $11,000 of her nonpassive income (wages).

Basit Siddiqi, CPA
917-280-8544

okay perfect.  I only make 57000 a year so I will fall well within that range. I have one rental that ended up as a money pit and I am now selling for 10,000. I recorded everything that I put into the home and all the rent that was collected. Thanks!

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