You bought a house with plans to renovate it, sell it and make a profit. Instead, renovation costs climbed, carrying costs added up, the real estate market changed - or all three happened at once. By the time you sold the property, your profitable house flip had become a loss. Can you deduct the loss?...Continue reading
Deducting your rental property tax losses against your other income is tricky, as you likely know. You have to get the tax law to treat you—say, a computer engineer—as a tax-code–defined real estate professional. Let’s say you get there. Does that status allow immediate use of suspended passive losses? Unfortunately, the answer is no. Here’s...Continue reading
If you buy and sell real estate, you need to know the difference between being classified for tax purposes as a real estate dealer versus a real estate investor. Real estate dealers are in the business of buying and selling real property—property is their inventory. Real estate investors own property primarily to earn income from...Continue reading