I like the way you present the content. So helpful. Thank you for sharing this information.

@TheTaxGeek

6 ай бұрын

I'm glad you found the content helpful.

There are some other exceptions to the passive loss rules that this video didn't mention. The biggest one is that you can also use the tax loss to offset non-passive income if the rental is a short-term rental with an average that of 7 days or less, and also you meet the qualifications for material participation. That is a major tax advantage of short-term rentals that the vast majority of tax professionals are still unaware of unfortunately.

@lHurtYourFeeIings

6 ай бұрын

Agree. I was about to mention this... I can't believe they didn't mention short term rentals.

@mike2959

Ай бұрын

100% correct.

Gold!! Thank you for posting this

@TheTaxGeek

5 ай бұрын

You're welcome!

Great Video! THANK YOU!

@TheTaxGeek

22 күн бұрын

You're very welcome!

Thanks for the video Sir!!

@TheTaxGeek

2 жыл бұрын

Your very welcome, as always!

very useful

The income limits are crushing 😔

What are the best ways to generate additional passive income (other than buying more rental properties) to offset these passive rental losses?

@TheTaxGeek

4 ай бұрын

Unfortunately, I don't have the expertise or qualifications to advise you in this area. There are dozens of other KZread channels devoted to this very subject.

Where do we track rental loss carrry forward?

@TheTaxGeek

2 ай бұрын

Carryforward passive losses are reported and tracked on Form 8582. A video is coming on this form.

Would renting a portion of your home be considered active?

@TheTaxGeek

9 ай бұрын

No, it's considered to be passive with active participation. Losses can only be used to offset other passive income, but you would be use up to $25,000 in losses to offset other income, as shown in the video.

What happens if you sell rental property where you end up with a loss for the year (and there are carried through losses from prior years)? Can it be used to offset other income or factored into calculating the capital gains on the sale?

@TheTaxGeek

Ай бұрын

Yes. Whenever you dispose of a passive activity with accumulated losses, you get to take all the losses and use them to offset other income. It reduces your taxable income, but it is not directly offset against the capital gains.

@jonmoore907

Ай бұрын

I see thank you.

Hi, as a U.S. citizen, if I bought a new construction condo in 2019 in Ukraine, and builder/project went BK, and recently, the city of Kyiv repossesed the land they were building on, claiming it was gotten fraudently in 2006 involving a bribe. Dead project Not sure how to write off this loss. Can't find any info. Do you know, or if not, where I can find such info? Thanks

@TheTaxGeek

6 ай бұрын

This is known as "involuntary conversion." This is the same as essentially selling the property for $0. How it's handled depends on the use of the property. If the property was rented out, you might be able to write the entire loss against other income. If the property was held for investment, it would be an ordinary capital loss and your write-off would be limited to $3,000. Complicating this matter is the property being in a foreign country, which may be subject to differing IRS rules. My best advice is to engage an Enrolled Agent, CPA, or attorney who can make sure this is done properly.

@jeffreyd508

6 ай бұрын

@@TheTaxGeek Thx for the detailed response. I will do so I assume it would be long term cap loss, and I can write it off against long term cap crypto gains?