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Rental losses against W-2 income

Up to $25,000

Can You Write Off Rental Losses Against W-2 Income?

Short answer: Yes up to $25,000 if you actively participate and your AGI is under $100,000; above $150,000 losses are suspended.

Rental losses are passive: you can use up to $25,000 against other income if you actively participate and your AGI is under $100,000 (phasing out by $150,000); the rest carries forward.

Records to keep: Keep leases, receipts, a log of repairs vs improvements, mileage to the property, and closing statements.