How much is to much ?

1 Reply

2020 bought primery plus rental

30k worth of write offs.

Tax guy told me to claim them all-,

Wanted a second opinion so went to accountant, accountant advise me NOT to as it would raise red flags and to use it another year, 2021 I have significantly more income, can I use some of that 30k for 2020 and some for 2021?

@Rafael R. It is highly unlikely that you Actually have $30k of “write offs”.

-there are no deductible write offs for improvements/repairs on your primary...they just get added to your cost basis.

-repairs/improvements to a rental to “get it ready to rent” are not deductible (other than holding costs like insurance, taxes, etc)....they get added to your basis for depreciation.

-even if deductible, there is a max deduction for losses from “passive” rental  investments, depending on your income