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oftentimes when real estate is rented expenses exceed rents received resulting in a loss but can you use this loss to offset other income in this video i'm going to tell you when you can and when you can't i'm the tax geek with more of your taxes oversimplified [Music] in general the irs considers real estate rentals to be a passive activity even though anyone who has ever been a landlord knows that being a landlord is anything but passive other passive income can come from partnerships or s corporations that you do not materially participate in we'll discuss material participation later in this video the irs usually only allows you to use passive losses to offset only other passive income any losses you are not allowed to take are carried forward until either you have future passive income or you dispose of the activity for example alice has a rental property that generated a loss of three thousand five hundred dollars she also had one thousand two hund

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