Finally! So the new stimulus has REAL HELP for real estate investors!

**heathernken** · 02-10-2009, 08:11 PM

I heard today that the new stimulus allows taxpayers to go back 5 years for refunds on losses rather than the current 2 years. Is anyone out there not taking advantage of accelerated depreciation on their property? This is a GREAT OPPORTUNITY!!! You may be able to generate losses on your 2008 tax return, especially of you take advantage of accelerated depreciation, and carry losses back 5 years. If you have improved property (must be rental or property held for investment), you accelerate depreciation and generate a loss, and you will get refunds of tax money you already paid. So, say you made 100,000 a year for the last 5 years, and paid 20K a year in taxes. This year you accelerate your depreciation, and generate a loss of 100k on your return, you can subtract the 100k from your income in 2003, file and amended return and get all of the taxes you paid on that 100k refunded to you.

**TooFarTampa** · 02-10-2009, 08:29 PM

Seriously ... there's an income limit, right, and if you surpass it the loss is only a passive loss, and thus non-deductible? Unless you sell the property, and it becomes an ordinary loss, and you have locked in the loss permanently, and get maybe 20-25 percent back. Still kinda stinks.

**SWGB** · 02-10-2009, 09:25 PM

I'm just not a fan of any kind of tax scenario that involves the word "generate".

**heathernken** · 02-11-2009, 05:55 AM

Originally Posted by TooFarTampa

Seriously ... there's an income limit, right, and if you surpass it the loss is only a passive loss, and thus non-deductible? Unless you sell the property, and it becomes an ordinary loss, and you have locked in the loss permanently, and get maybe 20-25 percent back. Still kinda stinks.

Nothing passive about being a landlord. Please let me hook you up with someone who can save you LOTS of money. My tax guy can help you TooFarTampa.