Skip to content
Tax Liens & Mortgage Notes

User Stats

14
Posts
2
Votes
Vik John
2
Votes |
14
Posts

Rental loss in tax filing ?

Vik John
Posted Apr 2 2024, 17:59

Hello,

Can I include rental loss in my tax filing for last 3 months of 2023?


thanks

User Stats

21
Posts
7
Votes
Kevin Hintz
  • Investor
  • Tacoma, WA
7
Votes |
21
Posts
Kevin Hintz
  • Investor
  • Tacoma, WA
Replied Apr 3 2024, 04:38

Whether you can include rental loss in your tax filing for the last three months of 2023 depends on various factors, including your specific circumstances, the type of property you're renting out, and the applicable tax laws in your country or jurisdiction. In many cases, rental losses can be deducted from your taxable income, but there are limitations and eligibility criteria that may apply.

User Stats

21
Posts
7
Votes
Kevin Hintz
  • Investor
  • Tacoma, WA
7
Votes |
21
Posts
Kevin Hintz
  • Investor
  • Tacoma, WA
Replied Apr 3 2024, 04:40
Quote from @Kevin Hintz:

Whether you can include rental loss in your tax filing for the last three months of 2023 depends on various factors, including your specific circumstances, the type of property you're renting out, and the applicable tax laws in your country or jurisdiction. In many cases, rental losses can be deducted from your taxable income, but there are limitations and eligibility criteria that may apply.


 What I'm trying to say is that I recommed giving us more details or if you don't want to put personal info on the internet find a in-person tax professional or accountant who is familiar with rental property taxation to determine your eligibility for deducting rental losses and ensure that you're compliant with tax regulations.

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

801
Posts
570
Votes
Melanie P.
Pro Member
#2 Multi-Family and Apartment Investing Contributor
  • Rental Property Investor
570
Votes |
801
Posts
Melanie P.
Pro Member
#2 Multi-Family and Apartment Investing Contributor
  • Rental Property Investor
Replied Apr 3 2024, 04:43

What are the nature of your losses? Was the property in service as a rental at all in 2023? 

User Stats

14
Posts
2
Votes
Vik John
2
Votes |
14
Posts
Vik John
Replied Apr 3 2024, 05:20
Quote from @Melanie P.:

What are the nature of your losses? Was the property in service as a rental at all in 2023? 


Yes it was rent for three months and then tenant had to go with eviction process for not being paying rent due to job loss.

User Stats

801
Posts
570
Votes
Melanie P.
Pro Member
#2 Multi-Family and Apartment Investing Contributor
  • Rental Property Investor
570
Votes |
801
Posts
Melanie P.
Pro Member
#2 Multi-Family and Apartment Investing Contributor
  • Rental Property Investor
Replied Apr 3 2024, 05:41

You will report your rental income and expenses on Schedule E. Keep in mind only the interest on your mortgage is tax deductible - not what goes toward principal. If you have a loss that you can't get back from investment gains this year you carry it forward.

User Stats

14
Posts
2
Votes
Vik John
2
Votes |
14
Posts
Vik John
Replied Apr 3 2024, 06:14
Quote from @Melanie P.:

You will report your rental income and expenses on Schedule E. Keep in mind only the interest on your mortgage is tax deductible - not what goes toward principal. If you have a loss that you can't get back from investment gains this year you carry it forward.

Thank you. So my situation is rental loss for last 3 months of 2023 and first three months of 2024. So I can file all loss in once next year 2025 for both 2023 and  2024 without filing amendment for 2023?

User Stats

7,563
Posts
3,165
Votes
Basit Siddiqi
Pro Member
#4 Tax, SDIRAs & Cost Segregation Contributor
  • Accountant
  • New York, NY
3,165
Votes |
7,563
Posts
Basit Siddiqi
Pro Member
#4 Tax, SDIRAs & Cost Segregation Contributor
  • Accountant
  • New York, NY
Replied Apr 18 2024, 16:28

If you had a property that was treated as a rental and it was placed into service, you should list it on the tax return.

Rental properties within the first couple years, as you stabilize the property, normally generate a tax loss on the return.

Whether you can utilize the loss on your return, as it may be considered passive, is another discussion.

User Stats

801
Posts
570
Votes
Melanie P.
Pro Member
#2 Multi-Family and Apartment Investing Contributor
  • Rental Property Investor
570
Votes |
801
Posts
Melanie P.
Pro Member
#2 Multi-Family and Apartment Investing Contributor
  • Rental Property Investor
Replied Apr 28 2024, 06:03
Quote from @Vik John:
Quote from @Melanie P.:

You will report your rental income and expenses on Schedule E. Keep in mind only the interest on your mortgage is tax deductible - not what goes toward principal. If you have a loss that you can't get back from investment gains this year you carry it forward.

Thank you. So my situation is rental loss for last 3 months of 2023 and first three months of 2024. So I can file all loss in once next year 2025 for both 2023 and  2024 without filing amendment for 2023?


 I've been traveling the last few weeks, but in case what Basit posted was unclear you report 2023 losses on your 2023 tax return. 2024 next year. You cannot combine them UNLESS the 2023 losses were incurred getting a property ready for rental PRIOR to it ever having been rented before. If you rented it or marketed it for rent in 2023 report in 2023.