π No one wants to lose money on their rental properties, as they are famously cash-flowing and can be a great source of passive income.
But if you currently have a vacant property or a very low rent, it may not be the end of the world if you have a Modified Adjusted Gross Income (MAGI) of up to $150,000.
β The “Mom and Pop Exclusion” allows you to deduct up to $25,000 in rental property losses, and those losses only have to be “on paper.”
Even if you have positive cash flow from your rental properties, with a little knowledge of the tax code, you can claim the losses and get a deduction.
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π If you would like to learn more about the different options you have for tax deductions, please feel free to contact us at info@wavetax.us
π At Wave Tax and Financial Solutions we are at your disposal to help you organize your finances.