C is a C.P.A.and operates his own practice out of a seven story building that he owns.He rents out five floors and uses two for his own business.This year he had a loss of $30,000 from the rental side of his operations.His accounting practice netted a profit of $600,000.C may offset the $30,000 loss against the $600,000 profit from his business.

Question

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According to the IRS rules, C can offset the loss from his rental business against the profit from his accounting practice. This means that his taxable income will be reduced by the amount of the loss, resulting in a lower tax liability.

C Is a CPA Is