Marc
Recycles dryer sheets
We bought our retirement home last year; about 2.5 years prior to actually retiring. I was lucky and had it rented before we even closed on house. When I did my return this year I was surprised to find out I couldn't deduct any of the loss due to limitations on passive loss. Wasn't a big deal this past year as it was only the depreciation that caused the loss. This year, due to property taxes and a small amount of maintenance, I will have a loss before depreciation.
First, I want to make sure that I didn't do anything stupid. I researched IRS pubs and used TaxAct to complete my return; they both said the rental house is passive loss. Second, I would like to know of any sources of passive INCOME that could be offset by these losses. Although most of my funds are in Tax Deferred accounts, I do have some funds available that could be invested differently (currently in index ETFs). So, are there could investments that put off passive income or is it not worth the effort?
thanks,
Marc
First, I want to make sure that I didn't do anything stupid. I researched IRS pubs and used TaxAct to complete my return; they both said the rental house is passive loss. Second, I would like to know of any sources of passive INCOME that could be offset by these losses. Although most of my funds are in Tax Deferred accounts, I do have some funds available that could be invested differently (currently in index ETFs). So, are there could investments that put off passive income or is it not worth the effort?
thanks,
Marc