|
Posted by Norm on March 18, 2008, 12:32 am
Please log in for more thread options
> removeps-gro...@yahoo.com wrote:
>
> >> I own a rental home property and during 2007 I am having a net loss of 7K
> >> after accounting depreciation and other expenses. [...]
>
> > If you are a real estate professional (meaning you work around 15
> > hours a week or more on your property and a few other conditions), you
> > can deduct your loss in full.
>
> And you work no *more* than 15 hours week at any *other* job that is not
> real-estate related, and you materially participated. Not all states
> conform to this rule.
>
> Working 15+ hours/week "on your property" would bother the tenants,
> wouldn't it?
>
> [...]
>
> > You only get the 500k exclusion if you lived in the house for 2 of the
> > last 5 years. So if you lived there for 2 years, then rented it for 3
> > years, you're set. Assuming your gains on the property are 600k, and
> > your disallowed loss over the 3 years is 50k, then your capital gain
> > on the house is 600k-500k=100k, and gain from Schedule E on line 17 is
> > negative 50k. [...]
>
> Don't forgot the up-to-25% gains tax on the unrecaptured sec. 1250 gain
> from depreciation allowed or allowable.
>
> -Mark Bole
>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used, >>
> << nor can it used, for the purpose of avoiding penalties >>
> << that may be imposed upon the taxpayer. >>
> << >>
> << The Charter and the Guidelines for submitting posts >>
> << to this newsgroup as well as our anti-spamming policy >>
> << are atwww.asktax.org. >>
> << Copyright (2007) - All rights reserved. >>
> << ------------------------------------------------------- >>
Along the same subject line and relating to the sec 1250 gain.
Scenario: There was not active participation and the renter is not a
real estate professional so the $7K loss is not allowed. Of the $7K
loss, $6K was depreciation.
The following year the home is sold. Technically the $6K would have
to be recaptured as income. How can you use the disallowed loss to
offset the income? Seems tough to have to include depreciation as
income when it never was used (disallowed) to reduce the income in the
first place??
========================================= MODERATOR'S COMMENT:
Please trim away all extra text not needed in your reply.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap