UNLIMITED LOSS DEDUCTIONS FOR REAL ESTATE PROFESSIONALS

Owning rental property may yield large financial gains in healthy markets.  Recently, however, fluctuations in the real estate and housing markets have produced conditions which can lead to great financial losses.  Because owning real estate is considered a “passive activity” by the tax code, there are certain restrictions and limitations...

How to deduct unlimited real estate losses against other income while avoiding the pitfalls of tax laws.

Date Published: Dec 08 San Francisco Business Times The Law Offices of Stephen Moskowitz, LLP has seen a major increase in audits and one of the common red flags we are seeing are taxpayers deducting real estate losses against ordinary income. The Internal Revenue Code places constraints on netting real...