Real estate ventures can generate substantial losses before they start to make a profit. 虽然不一定是理想的, these losses can be valuable at tax time, depending on whether they are considered by the IRS to be passive or active losses. BeachFleischman PC helps real estate owners in 凤凰城 和 OG真人APP下载, 亚利桑那州, realize the tax benefits they are entitled to by navigating the passive activity loss rules.
在一般情况下, losses from passive activities cannot be deducted from income derived from nonpassive activities. 适用于出租房地产的业主, this can be a particularly sticky situation, since the IRS assumes that rental real estate activities are passive by default—除非 the owner of that real estate meets the definition of a “房地产专业.”
Qualifying as a 房地产专业 requires individuals to:
- Perform at least 750 hours of services each year in real property trades or businesses, 和
- Spend more than half of their time in real property trades or businesses in which they “materially participate.”
To meet the material participation threshold, the individual must meet one of seven tests. 链接到房地产专业页面. While this is a high bar—especially for anyone with a “day job”—a couple of rules 和 elections can alleviate this tax burden. 例如, individuals with adjusted gross income of less than $100,000 may qualify for the “active participation” exception, 允许他们扣除最多25美元,000 in losses from rental activities that otherwise would be deemed passive. The “active participation” exception is a much less stringent test to meet than the “material participation” test.
A real estate owner with more than one property also might be able to cross that “material participation” threshold more easily by making an election to group certain activities. Since many real estate portfolios are made up of some activities that have profits 和 others that have losses, grouping activities can result in lower net taxable income.
Maximizing the tax benefits of real estate activities requires a thorough underst和ing of limitations on losses, as well as the rules 和 elections that affect whether a taxpayer can claim deductions for those losses.
超过15年了, the real estate tax advisors of BeachFleischman PC have been helping 房地产专业s 和 business owners:
- Determine whether an activity is passive or active
- Determine limitations on losses 和 carry forward disallowed losses to offset future taxable income
- Make elections (such as grouping of activities) to maximize tax benefits
Are you an owner of rental or investment real estate? BeachFleischman PC can help you achieve your desired tax results by evaluating your passive 和 active losses. Please contact us via the submission form below.