Article Date:
December 2014

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Married? You May Qualify for Huge Deductions on the Net Losses of Your Rental Properties

Estimated tax tip savings: The spouses in this article got a current deduction of about $30,000—and a huge tax savings—by taking advantage of the husband-and-wife rules for passive losses.


When you get married, you don’t lose your tax identity. The IRS continues to think of you and your spouse as separate taxpayers, even if you file jointly.


Lawmakers account for this by sprinkling the tax code with unique laws for married couples, providing some special and very favorable tax treatment for those who file joint returns.


For example, when it comes to deducting the net losses of rental properties, married couples get a better deal than do non-married folk (and even non-married business partners). Joint filers can split the burden of the passive loss rules, which otherwise put a limit on your deductions for net losses.


Is this special treatment on losses logical? Not entirely, but that’s beside the point. More important, if you’re married, you can take advantage ... Log in to view full article.

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