Tax Deduction and R.E License


Since I was not able to take all of my deductions this year ( $25K limit), does that mean that the remaining deductions will be added to the 2007 tax year? I was thinking that maybe I should obtain my real estate license in order to be able to deduct all of my expenses in the same tax year. Is that possible? Are there any draw backs if I go from a non license status to a license status in real estate. I also was thinking about this because of the amount of properties that I am buying, and holding each year. Let me know your thoughts on that, and if it would be to my advantage to get my real estate license.



your losses are “suspended” and acrried forward until you have a year where your income is low low enought to allow the losses or you sell the property

passive losses are limited unless you qualify as a real estate professional. this does not mean having a RE license; typically if you spend 750 hours in the business, you are a RE professional.

passive losses are not limited for a RE professional.