Getting around the AGI limit for passive-loss deductions
My wife and I are looking into shopping for a rental property. However, our AGI is above $150,000 a year, and neither one of us is a real estate professional.
Because of that, it looks like I would not be able to deduct any rental property loss against our regular income if I owned a rental property in the "normal way" (schedule E).
My question is whether or not it is possible to get around this by forming either an LLC or an S-Corp. It looks to me like if I did that, the net income/loss would be recorded on schedule C instead of schedule E, which seems to not be subject to the passive loss limits. However, I can't find any really good information about this anywhere.
Thanks for any replies, I've been searching for answers online for a couple hours and haven't found any that address this specific issue!