The 3 Levels of Real Estate Investing (And How They Impact Your Taxes!)

Did you know the IRS recognizes 3 levels of real estate investing — and your level determines how much you can deduct on your taxes?

Here’s how it breaks down:
🏠 Passive Income – You can only offset other passive income.
💼 Active Participation – You can deduct up to $25,000 in losses against active income.
📊 Real Estate Investor Status – You can deduct almost unlimited losses against active income.

And here’s the best part 👉 If you’re a business owner, you can split your income between active and passive, giving you access to real estate loss deductions even earlier than most investors.

Want Help from an Accountant to Ensure your Financial Stability?
Give Us a Call ☎️: +1 (479)-324-5592
Email Me 📩: [email protected]
Visit my Website 🌐: https://lnkd.in/gCv396FT
linktr.ee/erubioacctfirm

Visit my Social Media Platforms📱:
Instagram 📷: @rubioacctfirm
Facebook 📗: facebook.com/rubioacctfirm
TikTok 🎵: @rubioacctfirm
LinkedIn : linkedin.com/in/esmerubio/
YouTube : Esme Rubio, Accountant (English) 👉 https://lnkd.in/gWHvJJW5
Esme Rubio, Contadora (Spanish) 👉 https://lnkd.in/gkhfu_k8
--------------------------------------------------------------------------
Rubio Accounting Firm LLC
Esmeralda Rubio - CEO/Owner/Accountant 👩‍
Helping business owners all over the US with their tax needs ☎️📝
--------------------------------------------------------------------------
#RealEstateInvesting #TaxTips #PassiveIncome #ActiveIncome #RealEstateInvestor #BusinessOwners #TaxStrategy #RealEstateTaxes #IRS #AccountingTips #TaxAdvice