Share
Explore BrainMass

# Mr. A has three rental properties which he rents, but hires

Mr. A has three rental properties which he rents, but hires a service to maintain the properties. Mr A also have a full time job as a Sales Rep with ABC Manufacturing.

Mr A's rental properties generate \$3,000 each month. The depreciation on the properties totals \$2,000 each month plus his monthly maintenance fees of \$1,500 for the three units. Mr A wants to know how his rental properties can be used as a tax advantage. Specifically, can the loss on his rental activities (\$3,000 less \$3,500 = \$500 loss) be used to offset his W2 income? Why or why not?

#### Solution Preview

Mr. A has three rental properties which he rents, but hires a service to maintain the properties. Mr A also have a full time job as a Sales Rep with ABC Manufacturing.

Mr A's rental properties generate \$3,000 each month. The depreciation on the properties totals \$2,000 each month plus ...

#### Solution Summary

Mr. A has three rental properties which he rents, but hires a service to maintain the properties. Mr A also have a full time job as a Sales Rep with ABC Manufacturing.

Mr A's rental properties generate \$3,000 each month. The depreciation on the properties totals \$2,000 each month plus his monthly maintenance fees of \$1,500 for the three units. Mr A wants to know how his rental properties can be used as a tax advantage. Specifically, can the loss on his rental activities (\$3,000 less \$3,500 = \$500 loss) be used to offset his W2 income? Why or why not?

\$2.19