[quote=ltsdd]SK – I have yet to be able to demonstrate that I spend >=750 hours/year managing the props. So it’s been counted as passive income instead of a business. Am I missing something?
Flu – I hope you’re right. The new tax “law”, from what I have read, only mentioned the $10K cap. I interpreted that as a hard cap on how much you can deduct regardless of income or other expenses incurred wrt the rentals. For example, if the rental generates $15k in rents and the interest for the rental is also $15k, your taxable income will be $5k instead of $0 as it has been in the past.[/quote]
Rental income is passive, regardless of how many hours you spend on it. It’s still business income.
The state and local income tax limit only applies to itemized deductions. Has nothing to do with business deductions.
