What is my tax loss good for?

[Matt Tallent]

Hey all,

2018 was my first year investing and I took a loss on my first property because there were repairs and upgrades I wanted to make. I’m taking a loss for 2018 and want to know what the loss is good for. I’ve heard I can’t use it against my w2 income but I do pay my property taxes monthly can I get a refund for already paid taxes? Thank you!

[Liam Kinsolving]

Hi Matt, 

Everyone's tax situation is different and you'll want to make sure a trusted, knowledgeable professional is preparing your return. That being said depending on certain income limitations and weather or not you actively participated in renting the property (which it sounds like you did) you can deduct up to $25,000 of passive real estate rental losses against non-passive income. This is know as the "Mom and Pop Rule".