Passive loss limitations on rental real estate : Taxpayers can recognize losses, but only in the circumstances discussed / Celia Lau
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TextDescription: Vol 236 (3) pages 20-25 : illustrations ; 28 cmUniform titles: - Journal of Accountancy / September 2023
As the popularity of short-term rentals through services such as Airbb and Vrbo continues, CPAs more often face questions from their tax clients of how rental income and expenses are treated for tax purposes. Those with losses from the activity may expect it will offset other taxable income. Thus, it is critical for tax practitioners to educate these clients regarding the Sec. 469 passive activity loss limitation rules and their exceptions. CPAs can then proactively advise them how to maximize tax benefits where opportunities exist and minimize surprises come tax time.
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