Question on Renting / Tax Implications

**protoboard** · 04-06-2010, 06:25 PM

Hopefully someone here can answer this for me, it could get long though, so I will try and just post an example and see what happens.

I bought my home for 200K in this example. This was 6 years ago. Thinking I would be lucky to get 160K, I would rather rent it out. So, lets say I rent it out, and my Rent Income - (prop. tax + mortgage interest + association fees + depreciation) come out to be a loss of 6K per year. This is due to the depreciation. Can I claim this 6K loss against my ordinary income each year? Or, do you carry it over and after say 3 years claim a loss of 18K then?

Thanks in advance. I have more questions on this topic but lets take one at a time.

**Hollywood Landlord** · 05-01-2010, 03:37 PM

It wouldn't come out against your regular income. You would have losses for real estate which is a separate form altogether... however, I do believe you can take the accumulated loss.