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Updated over 8 years ago on . Most recent reply presented by

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Peter Duncan
  • Investor
  • Seattle, WA
0
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12
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Passive Activity Loss (PAL)

Peter Duncan
  • Investor
  • Seattle, WA
Posted

If one qualifies for the exception to the Passive Activiry Loss (PAL) due to Modified Adjusted Gross Income (MAGI) at 100K or under, can he/she deduct rental losses where no rental income existed that year?

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59
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Scott Vance
  • Investor
  • Fort Bragg, NC
20
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59
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Scott Vance
  • Investor
  • Fort Bragg, NC
Replied

@Peter Duncan  In my tax practice I would be very careful in this situation.  If you have had absolutely no rental income for a good reason, ie going through a lengthy eviction or home damaged  and being repaired that might justify it but in my mind not having any rental income is a red flag.  

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