Provision for Losses Limit
March 27, 2018
A downside to the Act:
- Real Estate professionals can still deduct losses against income
- Losses now limited to $500,000 per year
They put in a provision here that losses from active trades of businesses, including real estate professionals, are limited to $500,000 a year. So, if you have a million dollars of loss and a million dollars of interest dividends and wages, you're going to pay tax on $500,000 and the extra $500,000 of losses carries forward with the net operating loss.