Two scary words in tax reform are “fairness” and “simplification”. In most cases, this combination raises your taxes and makes the law more complex.
As you likely know, tax reform has occurred again, and it brings its share of good and bad news. But for your rental real estate loss deductions, the good news is that the reform does not alter the beneficial strategies here.
In general, rental properties are passive activities subject to the dreaded passive-loss rules. IRS regulations contain six non-rental exceptions to the definition of rentals. In most cases, the non-rental exceptions are businesses for tax purposes. To deduct losses of any of the six exceptions, you simply need to materially participate in the activity.
Feel free to contact us to discuss these strategies and how they may provide you big deductions. Give us a call at (610) 863-8347 today for a free consultation!
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