What? More profits because of higher taxes?
Yes. It’s true.
And that’s good news since it’s likely that the fiscal-cliff legislation increased your taxes this year.
Here’s why this happens: When your rental property shows a tax loss for the year, higher taxes produce a greater tax subsidy, which you realize
immediately if you can deduct your rental property tax losses, or
later if you suffer from the passive loss rules that limit your ability to deduct losses in the current year. For some of ... Log in to view full article.