Rental Real Estate Losses

Rental Real Estate Losses

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Author: Scott Zickefoose, CPA

Current economic conditions have forced many rental real estate owners to become accustomed to producing taxable losses.  However, current tax laws are prohibiting many from realizing those losses in the current year. Per IRC §469(c)(2), rental real estate income is by default classified as passive income.  Passive losses can only be used to offset passive income – not ordinary income or portfolio income.  Rental real estate owners often find themselves unable to use the losses derived from their rental activities because they do not have passive income to offset the losses against.  Rental Real Estate Losses


About the Author

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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