Real estate pros can deduct rental losses

Real Estate Tax Talk

BY STEPHEN FISHMAN, FRIDAY, SEPTEMBER 14, 2012 Inman News®

Tax form image via Shutterstock.

A recent court decision will make it easier for many individuals to qualify as real estate professionals for purposes of the IRS passive loss rules. This will enable more landlords to fully deduct their losses from real estate rentals.

The passive loss rules ("PAL rules") are one of the most confusing areas of taxation. Under these rules, losses from real property rentals are classified as "passive activity losses." These rules permit a rental property to deduct from his other non-passive income, such as salary or other business income, a maximum of $25,000 each year; and even this is phased out if the owner’s adjust gross income exceeds $100,000. Unused losses must be saved for future years.

Luckily for real estate professionals, they can qualify for a special exemption from the passive loss rules -- an exemption nobody else can get. If you qualify, you may deduct any amount of rental activity losses you have for the year from your other income -- such as real estate commission income -- regardless of how high your income for the year may be.

Realtor tries a new tack with music video Lip-synced spot designed to get clients to 'Call Me Maybe'

BY PAUL HAGEY, WEDNESDAY, JULY 25, 2012 Inman News®`

Video camera image via Shutterstock.

A Realtor in North Carolina is trying (tongue-in-cheek) a new tack to get potential clients to call -- making a music video. Call me, maybe?

Justin Bieber's done it. TheHarvard Baseball team's done it. Katy Perry's done it. The Miami Dolphins Cheerleader shave done it. Now a Realtor has done it.

Jessica Edwards, 30, an agent with Coldwell Banker Sea Coast Realty in Wilmington, N.C., got seven girlfriends together on a Monday evening a couple of weeks ago, hired her listings videographer and filmed a lip-synced music video of Carly Rae Jepsen's hit pop song, "Call Me Maybe," currently the No. 3 single in the iTunes Music Store.