Can depreciation be written off against your paycheck

[David Hayman]

can depreciation from a rental property be used against paycheck income?

[Brandon Hall]

@Colleen F. Simplifying the tax code would stump my business's growth! Can't have that happen :)

You are correct when speaking in terms of being classified as a real estate pro for tax purposes. However, there is another element meant to help the smaller taxpayer who doesn't qualify for the real estate pro classification.

If your Modified Adjusted Gross Income (MAGI) is below certain thresholds ($150k if married filing jointly) then you can write off a certain amount of your passive losses against your ordinary income. Unfortunately, you are phased out of the loss allowance once your MAGI exceeds $150k.

Just wanted to clear that up.