CPA - Tax Consultant Recommendation
Hi All- This is my first year in real estate investing and i have bought 4 properties this year spending roughly 30-40K in each of the properties for rehab. Can anyone please suggest me if i can offset that spending against my W2 income (>200K)? I’m putting al those properties on long term rentals. I understand you may not be tax expert but any general guidance will be appreciated.
Additionally will take any CPA recommendations? Looking to find someone who works with real estate professionals.
Most Popular Reply
@Abhi Patel - You can deduct up to $25,000 in passive losses (Rentals) against your ordinary income (W-2) and other active business income if your modified adjusted gross income (MAGI) is $100,000 or less.
This deduction phases out $1 for every $2 of MAGI above $100,000 until $150,000 when it is completely phased out. These numbers are for married filing joint couples. For single individuals it phases out $1 for every $2 of MAGI above $50,000 until $75,000.
This sounds like it doesn't apply to you so you will need REPS. Don't worry, the losses will carry forward.
- Nate Meeker
