Wcm7315 wrote:

- quote -

The maximum reduction of income due to rental losses is
$25,000 less half of the excess of MAGI over $100,000.

So -- the answer is no.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

will5144[at]aol.com (Will5144) wrote:

- quote -

Part of it, anyway. Assuming that the "joint income" above
is AGI disregarding the rental loss, and assuming you
"actively participate" in the rentals, then you could deduct
up to $2,500 of the rental loss without the 401k plans, and
and up to $13,500 WITH the 401k plans maxed out.

Of course, the losses are suspended, rather than lost --
until your AGI permits use (up to $25,000 total per year) or
you sell the property.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

I don't recall seeing the first posting, but yes, if you can
drop your income (AGI) you can take the losses.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
1040EZ and 1040A tax prep at www.1040.com/1040pro

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I posted this before and got no replies, so I'll try again.

My wife and I own two rental homes which had about a $24000
loss in 2002. Because our joint income was about $145,000,
we were unable to take the loss.

If we were to each contribute to a retirement plan (401k
for me, 403b for her), would the $22,000 reduction in
taxable income then allow us to use the $25000 loss,
which I expect to have again for 2003?

Thanks for your help.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->