Tax deductions and personal income
Do deductions for investment property (depreciation, property mgmt, mortgage interest, etc) only count against your rental income or can it also apply to personal (w2) income? I only have 1 investment property currently. I tried googling and couldn’t find anything.
Most Popular Reply
MAGI below of $100,000 you can deduct up to $25,000 of passive (rental) losses against other income.
MAGI above $150,000 and all passive losses are suspended - meaning you carry them forward to future years.
MAGI between $100,000 and $150,000 you are pro-rated on a straight line. For every $2 of income over $100,000 you lose $1 off the amount (up to $25,000) of passive losses that can be deducted against other income.