All Forum Posts by: Sharon Hsu

Hello Bigger Pockets fam,

I was hoping for a good contact to rent out my furnished condo in San Jose, Ca. Would people recommend renting out furnished units or is it better to sell my furniture and then rent it out?

My Current PM doesn’t rent out furnished units but thought it might be more profitable to rent it out furnished.

Thank you so much!

@Basit Siddiqi if my losses wipe out all of my taxable income is that something I should be way of? I’m thinking ahead if I want to get a loan or something...

@Basit Siddiqi yes she’s credentialed. My mistake was not checking whether she specialized in real estate. I didn’t realize it would be this complicated.

@David M.when you say you inefficiently used your losses. What would you have done differently? Also it’s a good thing to not have to pay taxes unless I’m missing something when taxable income is wiped out.

@David M. From my research you seem to be correct for sure. Thank you for sharing your experience and knowledge. Gosh sort of disappointing to find out that not all losses can be carried over. My rental was bleeding money also so I’m just happy to get out and lesson learned.

@Michael Plaks thank you! This is all so confusing. I called 2 tax attorneys via Parker Stanbury and they both told me I could carry it over hence my hunt and search to figure this out. I then spoke w an EA and HR Block and they mentioned like you that once the rental is sold then you can’t carry your losses over to following years. Ugh. I’ve been spending so much time on this to find out that my tax preparer was correct and the tax attorneys were not. That’s interesting

@Cara Powers I’m trying to make the 10/15 deadline. Although I might just submit it and revise it later.

@Michael Plaks thanks! So I assume once I sell the rental property then I can’t carry my losses over to following years?

@Basit Siddiqi interesting. My friend sent this to me so I’m confused:

1. regarding rental property tax filing:

a. You will report your property losses, along with your rental income, on Form 1040 Schedule E,

then transfer the information to Line 17 Form 1040 Schedule 1.

b. You’ll only be able to claim rental property losses against other passive income, like rental property income.

***Rental property losses are considered passive losses, which means they can only be deducted from passive income.

If you don’t have enough in rental income for the tax year to offset your losses, you should be able to carry the excess over to a future year. However, you can only use the excess losses against other passive income, like rental property income. ***

@Michael Plaks so property sale loss, loss due to operational costs can not be carried forward even if the total can not be applied to 2019 taxes?

My friend sent this to me but he isn’t a tax preparer:

1. regarding rental property tax filing:

a. You will report your property losses, along with your rental income, on Form 1040 Schedule E,

then transfer the information to Line 17 Form 1040 Schedule 1.

b. You’ll only be able to claim rental property losses against other passive income, like rental property income.

***Rental property losses are considered passive losses, which means they can only be deducted from passive income.

If you don’t have enough in rental income for the tax year to offset your losses, you should be able to carry the excess over to a future year. However, you can only use the excess losses against other passive income, like rental property income. ***