The IRS allows you to write off expenses and depreciation of a rental unit against income from that unit (and I would assume others). You can also write it off against "regular" income (e.g. salary) up to a point. Between $100k and $150K AGI it is phased out. After $150K AGI, you cannot write off against you "regular" income. BUT...if you had other passive income (e.g. another unit) you can off set it. So my question is, what other kinds of income can be offset? Can any distributions from REITs or MLPs be classified as passive and be offset by depreciation/expenses?I know, I will need to check with a CPA soon, but any experience on this board?
I wouldn't worry about it, all the tax laws are going to change and I promise - thanks to the people others elected - you will be paying more!
http://fairmark.com/forum/read.php?2,20245 Passive income does not include investment income (portfolio income). The regulations state that passive income specifically does not include income from the following, including REITs. See section 1.469-2T(c)(3) below. Of course.
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