If you are lucky enough to own a bit of San Francisco, this has been a great time for real estate. After the crash of 2008, the market has recovered and then some, with San Francisco being one of the hottest real estate markets in the United States. While for most of us, we are lucky if we just own our own home in San Francisco, for those more fortunate, they may own investment properties – whether commercial or residential in this city by the Bay. This month’s lively Tax Tips Newsletter for San Francisco, has an in-depth discussion about passive activity losses from rental property. To quote it –
Rental property is deemed to be a passive activity, so the passive activity rules typically apply to individual investors acting as landlords. Investing in real estate may delivered untaxed income, but deducting losses can be challenging… Investment property owners can take depreciation deductions, even if the property is gaining value. What’s more, this deduction requires no cash outlay.
Individual situations can vary quite a bit, depending on how active one is with the rental property as well as one’s adjusted gross income. If you own a property in San Francisco, here are some sites where you can directly look up what your home is worth, plus some official links on San Francisco real estate –