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[quote=Anonymous][quote=Anonymous]previous poster said: Unless you are making $100k or less or are in the real estate biz, you cannot deduct the losses on your 1040. You carey forward the losses until you sell, and then you can take the loss the year you sell.

when you say "making 100k or less or in the real estate biz"---do you mean household income has to be 100K or less??  I thought rental income losses can carry forward to  earned income ?

[/quote]

Rental income losses can offset W2 earned income, but only for real-estate professionals (which you wouldn't be) or if your household income is below a rather low threshold.  I think it is something like $100,000 for a single person and $150,000 for a married couple, and even then there are various phase outs.  Even then you can only offset I think $25,000 (or the portion of this that hasn't phased out) from W2 earned income per year with rental losses.  There is lots more information on this all here: https://www.irs.gov/pub/irs-pdf/p925.pdf[/quote]

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