I'm trying to better understand our taxes. I am reading about how you generally cannot offset earned income (W2 wages) with rental real estate losses. But there seem to be 2 exceptions - the real estate professional exception, and another one if you earn MFJ MAGI < $100k, and have losses < $25k. Is this right, am I on the right track? This sounds promising for us.
But, if I am understanding correctly, the MAGI here adds back in your traditional IRA contributions, is that correct? That very well might throw us over the cliff.
Thanks!
MouseBandit