Passive Activity Loss: Tax Tips for Real Estate Investors

This topic could have a huge tax implication if you receive rental income and you incur a loss. Losses are common in years with significant expenses or vacancy for a long period.

​There are other tax implications on repairs depending on their significance. (We will cover the tax implications of improvements vs. repairs in another entry).

Why is it important to understand the difference of passive vs non-passive loss? IRS limits your loss if the activity is passive.

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