Bloat – are you saying that 2008 can take his entire $2K/mo loss as a writeoff? ($2K/mo loss * 27%ish tax bracket = $500/mo tax savings?)
I don’t think that is correct
As a rental the condo’s expenses, depreciation and income go onto Schedule E not Schedule A – the benefits from negative income on Schedule E are significantly less than the same deduction on Schedule A – and, as I pointed out in another thread, if you have W-2 income that puts you into AMT territory the tax benefits from losses on Schedule E are reduced even more because the bennies from Sched E are offset by increases in AMT
I’ll say it once again: be VERY conservative when making buy/sell decisions based on expected tax bennies – if the deal really hinges on the tax considerations go to a CPA and work through some real numbers
