Hello and

welcome to Moneygirls quick and dirty tips for a richer life.

Today's topic, deducting a loss from the sale of a rental. A listener

called in with this question about how to deal with a loss from the sale of a

rental property. Hello, I have a question.

I am actually in the middle of a very bad investment.

It's a rental investment, and I'm trying to sell it now,

even though the market's not doing so well,

but I just want to cut my losses.

And my losses are actually going to be above $25,000, which is the deduction that I could take.

What happens when, say, it's a loss of $50,000 and your H.I is under $150,000?

Can you take $25,000 one year and then take the other $25,000 from the $50,000 loss the following year against your active income.

Thanks for the question. First off, you're not alone. These days countless homeowners and rental property owners across the US are unable to sell

at a profit because of drops and real estate values in many locations.

He practically can't open up a newspaper without seeing stories about the problem.

Although we'd all like every investment to be a winner, reality is that not all of them are,

and sometimes taking a loss is a reasonable choice.

Minimizing your losses is an important part of protecting your finances so that you can

more easily grow your wealth in the future.

The tax implications of selling rental real estate, whether at a

profit or a loss, can be very complex. Before selling a rental property, it's

really important to consult with a CPA who's an expert in rental real estate to find out what the

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