USA Real estate professional designation to offset ordinary income

[leea79]

Hello!

First post in this forum. I was hoping I could get some input from people who successfully offset their ordinary income (W2, 1099, etc.) with losses from real estate (i.e. depreciation). It seems like a very effective but tricky tax strategy.

Thanks

 

[BIG E]

I suggest you review the Passive Activity Loss rules.
There are very strict rules in the offsetting of PALs against ordinary income.
Yes - there are special rules dealing with real estate professionals including the definition of what constitutes a real estate professional.