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I am depreciating rental property that I own. Do I need to ...
Sent to Tax Experts March 22 05:38 PM

I am depreciating rental property that I own. Do I need to file FORM 8582 if my income is less than $100,000?

 

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oakland, California

Customer (name blocked for privacy)
Status:  Closed   Value: $10
Answer
March 22 5:41 PM (3 minutes and 48 seconds later)
         
REPLIEDCheck Mark
Form 8582 is to help in the calculation of a rental loss that a taxpayer may have. It is only needed when a rental loss happens. It has nothing to do with depreciation. Depreciation is reported on Form 4562.

Wayne Brasch

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Reply
March 22 6:04 PM (23 minutes and 1 second later)
         
Reply to Wayne Brasch's Post: Sorry I misspoke. Do I need to file the form if I make less than $100,000 and I have a loss in operating my rental property?
Customer (name blocked for privacy)
Answer
March 22 8:06 PM (2 hours and 1 minute and 58 seconds later)
         
ACCEPTEDCheck Mark
You do not have to file a Form 8582 if when you combine all of your net income and net losses from rental passive activities (all rental activity is considered as passive)you don't have an overall loss.

OR

You actively participated in rental real estate activities and you meet ALL of the following conditions: Rental real estate activities with active participation were your only passive activities; you have no prior year unallowed losses from these activities; your total loss from the rental real estate activities was not more than $25,000; if you are married filing separately, you lived apart from your spouse all year; you have no current or prior year unallowed credits from a passive activity; your modified adjusted gross income was not more than $100,000; you do not hold any interest in a rental real estate activity as a limited partner or as a beneficiary of an estate or trust.

I realize this is very detailed reading, but all of these apply to the question you asked.

Wayne Brasch

If my answer helps, please click on Accept so that I can get paid for my time and efforts. If it doesn't help, please tell me what else I can do for you to try to help.
Wayne Brasch -- Accountant and Business Consultant -- 100% Positive Feedback on 937 Tax Accepts
Master of Science in Taxation. Tax experience since 1963.
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