mikeb
My wife and I are considering purchasing a second home to use as a vacation rental. I recently learned that we would not be able to deduct a total loss from operating it due to our AGI being over the IRS limit. As an example... If we earn $15k in rentals and have $20k in losses, we cannot deduct the $5k net loss from our regular income because we exceed the AGI limit. We can only show a $0 net on our 1040.
Does anybody know if forming an LLC with the property would help that situation? I've heard that it might...
Any help is appreciated.
Does anybody know if forming an LLC with the property would help that situation? I've heard that it might...
Any help is appreciated.