Rental deductions & W2 income

[Jason Miller]

My wife and I own 3 rental properties and our primary house. We both have W2 jobs and gross about $130k together. We are not real estate professionals.

My CPA says it’s best for us to take the standard deduction despite our expenses from rental properties and repairs/Reno greatly exceed the married standard deduction.

My CPA explained to me this is because our rental deductions only apply to our rental income and does not reduce our W2 taxable income. I feel like this isn’t correct since it’s taxed as ordinary income right?

Am I missing something?

Thanks!!

Jason

[Linda Weygant]

Good lord, this industry is whacked.  A person goes to a professional and gets correct advice.  They doubt it and go to a public forum to ask.

A professional chimes in and gives the correct advice.

A non professional also chimes in and says the exact same thing in a slightly different way.

The non professional is the one who is thanked.

@Natalie Kolodij @Steven Hamilton II @Ashish Acharya  

Some days....