You can offset your rental losses by collecting rent in advance. In a tax year, if your rental property expenses exceed your rental income, and AGI limitations do not allow you to claim a loss, you can try avoiding the loss carryover by increasing your rental income.
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.
To avoid carrying losses into future years, landlords can collect rent in advance. Increasing rental income for the year might help landlords deduct all expenses during that year, helping them avoid loss carryovers.
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