Mr.Moyer owns residential rental property.This year,he received $7,000 revenue from the tenants and incurred $14,900 rental expenses.Mr.Moyer must include $7,000 in gross income and is allowed only $7,000 of above-the-line deductions for the expenses.

Question

Quizplus · Accepted Answer

Mr. Moyer must include the $7,000 in gross income, but he can deduct the full $14,900 of rental expenses, resulting in a net loss that can offset other income, subject to passive activity loss limitations.

MrMoyer Owns Residential Rental Property