Need help with tax problem
My wife and I are new to real estate investing. We recently bought a duplex and we are currently having it renovated. We will have a fair amount tied up in renovations when we are done, somewhere in the ball park or $65k, we only paid $35k for it though. I recently bought a book to read up on landlord tax laws, “NOLO’s Every Landlord’s Tax Deduction Guide”. In there I read that if you make over $150k a year you CANNOT DEDUCT ANYTHING RELATED TO YOUR RENTALS. This is obviously a huge blow to my entire real estate investing plan. So one question I have is does anyone know any tips to get around this unfortunate law? I have an LLC that “owns” the property and once the property is rented I don’t see making more than $15k a year from it. It sounds like I can write off my losses against that but that won’t be until next year or the year after. How long can I carry losses over?