Where Form 8865 Deductions 2023-2024

Hi, this is Evan Hutcheson. I'm going to help you file rental income or loss on the Schedule A form of your individual tax return. I'm going to use the IRS forms that I've downloaded off the internet as a guide for filing. The best way for you to file if you're going to file with the IRS using the IRS forms is to go through their website - Free Fillable Forms. It's a pretty simple process and they do a lot of the calculations for you. So, when I'm filing, when I'm doing the guide here, I'm going to assume you're using the Free Fillable Forms and I'm going to show you what calculations the Free Fillable Forms automatically calculates. A lot of people, maybe you're included, maybe you're not, think that having rental revenue coming in is a surefire way to have a surplus of income, but it's actually pretty common to have a tax loss on rental activity due to all the interests and the depreciation and everything like that. You are normally not allowed to deduct the tax loss since rental activity is considered a passive activity, unless of course, you're a rental real estate professional, then it's your job and it's not passive activity. However, if you actively participate in the rental activity, which means if you collect the rent yourself, if you call the repairman yourself, if you don't have a management company doing all this for you, you're actually involved a little bit, then you are actively participating. If you're actively participating, you can deduct up to $25,000 of your loss. Now, if you make more than $100,000 on your modified adjusted gross income, that $25,000 starts to fade away until you hit $150,000 when that loss completely goes away and you're not allowed to deduct...