All Forum Posts by: Tom Read
Tom Read has started 1 posts and replied 3 times.
Post: Can I write off interest on my rental in MI while I live & rent in CA?
- San Francisco, CA
- Posts 3
- Votes 0
Thank you Steven for your quick & accurate answer.
Post: Can I write off interest on my rental in MI while I live & rent in CA?
- San Francisco, CA
- Posts 3
- Votes 0
Originally posted by Jon Holdman:
You will have rental income from that property. And expenses, including interest. And depreciation, starting from when you put it in service as a rental. You add all that stuff up (income is positive, expenses are negative) to get a new rental income. If that's positive, its income and subject to tax. If its negative, that's a passive loss. All this should be on the Schedule E you should be filing for the rental.
If your AGI was under $100K total, you could use up to $25K of passive loss to offset other income. Over $150K, you cannot. In between that $25K special allowance phases out $1 for every $2 of AGI over $100K.
Since you cannot take a passive loss, you would carry that forward from year to year. When you eventually sell that, or any, rental property, you can use those carryforward losses to offset the gain on the sale.
Post: Can I write off interest on my rental in MI while I live & rent in CA?
- San Francisco, CA
- Posts 3
- Votes 0
I own a condo in Novi, MI that I purchased in 2001. I married & moved to take a job in California but wasn't able to sell my condo. My wife & I rent in San Francisco & our annual income in 2012 was $ 207k. My CPA tells me that I can't write off the interest on the condo in MI, until either I sell it or our annual salary drops below 150k. Friends & co workers tell me that I should be able to write off the interest & I would like some one who knows who is right & is it time
to get myself a new accountant ? I would appreciate clarification on the subject.
Tom