Question about real estate and taxes.

[Kenedy A Foryoung]

Newbie on bigger pockets looking to buy a fourplex and house hack. I appreciate all the sound advice and points of view I have gotten on this forum thus far.

Do tax deductions in real estate (for example depreciation) carry over to ones regular W2 income (for example a physician salary)?

[Nicholas Aiola]

@Kenedy A Foryoung If you make less than $100k, you can write off up to $25k of net rental losses (rental expenses in excess of rental income) per year.

If your income falls between $100k-150k, your allowable rental loss phases out.

If you make over $150k, you cannot deduct any net rental losses against your W-2 income unless you're a real estate professional (which you likely won't qualify for with a full-time job). They will be suspended and carry forward until you can use them.

As a physician, I'm sure you report higher-than-average W-2 income, so you may not be able to offset any of your W-2 income with your rental losses. Obviously, your specific facts and circumstances may differ, so it may be worthwhile to consult with a real-estate-savvy tax professional to better understand your options.