Collect Rent in Advance to Offset Loss Carryovers

[Tax Tip]

One main benefit of owning rental property is being able report a
loss, but some taxpayers cannot take advantage of this tax shelter due
to high income loss limitations. Their losses get carried forward, and
cannot get deducted until they are offset with future income.

If your rental expenses exceed rental income, and your AGI limitations
do not allow you to claim a loss, you can decrease the loss carryover
by increasing rental income.

Since rental income is taxable in the year it is collected, rental
losses can be offset by collecting rent in advance. By increasing
rental income for the year, you have the leverage to deduct more of
your expenses.

Check out Real Tax Tips at TReXGlobal.com to learn more about saving
time and money on properties and taxes.
Be sure to try Simplify'em, the Property Management Software that's
available for free at TReXGlobal.com.
(http://www.trexglobal.com)

Community Relations TReXGlobal.com
(http://www.trexglobal.com/property-management-software)
Property Management Software for FREE, Money Saving Tools for Real
Estate Investors