Uh Oh, Small RE Investors May Miss Out On 20% Federal Deduction

[sfdragonboy]

Small real estate investors might miss out on new federal tax deduction

[caiguycaiguy]

Luckily I own more than 2 units then.

[ptiemann]

20% deduction on net rental income… sounds good, how does it work if I show a 300k loss? I get to subtract 20% and it becomes a 360k loss?
I don’t want to turn it into a 240k loss!

I have a $1m LT capital gain on the sale of a rental coming week. 1031 is not an option. Sadly, I found out that capital gains from sale of a rental property don’t qualify for that 20% hair cut either.

I think only way I can use the 20% for sure is for earned income from flipping or sale of new construction.

[manch]

The Latest Tax Reform Update and What It Means for Real Estate Investors

[buyinghouse]

@ptiemann

20% deduction on net rental income… sounds good, how does it work if I show a 300k loss? I get to subtract 20% and it becomes a 360k loss?
I don’t want to turn it into a 240k loss!

I have a $1m LT capital gain on the sale of a rental coming week. 1031 is not an option. Sadly, I found out that capital gains from sale of a rental property don’t qualify for that 20% hair cut either.

I think only way I can use the 20% for sure is for earned income from flipping or sale of new construction.

I sent you a private message.