How much of a loss can you claim on rental property?

+1 vote
asked Nov 28, 2018 in Real Estate - Renting by AmeliaBr (420 points)
How much of a loss can you claim on rental property?

1 Answer

0 votes
answered Dec 2, 2018 by 887drewia (430 points)
Rental income from rental properties is considered to be passive income which is where you make money without doing much work and the money just flows in.

And on taxes passive income cannot usually be deducted on the tax forms as a loss like non passive income sources could be.

However as long as you're actively participating in the rental income then there is a special rule in the taxes that says you can deduct as much as $25,000.00 as a loss on the rental property.

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