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

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Luckily I own more than 2 units then. :wink:

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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. :wink: