Losses on Rental Property When your expenses from a rental property exceed your rental income, your property produces a net loss. This situation often occurs when you have mortgage interest, depreciation deduction and cash expenses. The IRS has limit the loss deduction. Passive Loss Rules Property rental is a passive activity and subject to IRS […]
Category: Rental Income and Passive Loss Rules
Depreciation of Rental Property
Depreciation is a deduction to your income that allows you to recover the cost or other basis of property over the expected life of the property. It is an allowance for wear and tear or obsolescence of the property. In reality, the value of real estate property may not decrease at it allowed. So you […]