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I’m making a change. Starting today, this newsletter becomes Real Estate Tax Intelligence, focused on the tax side of real estate investing.
Why the change? For most investors, taxes are one of the biggest costs of owning real estate. It’s also where I can help most. I’m an Enrolled Agent (enrolled to practice before the IRS), and I own rentals myself. Depreciation, passive losses, short-term rentals, selling and 1031 exchanges are concepts that shape what you actually keep, and the higher your tax bracket, the more they matter.
Here’s what to expect:
Free (no action needed): You’ll keep getting one free article a month on a real estate tax topic. Today’s is below.
Paid weekly edition: An in-depth issue every week, with:
One tax strategy a week, explained in full: who it works for, how it works, and what it takes to qualify
The rules high earners need to understand: passive loss limits, real estate professional status, and the short-term rental rules, and how investors legally work within them
Depreciation strategies: cost segregation, bonus depreciation, and when accelerating deductions makes sense (and when it doesn’t)
Buy, hold and sell planning: structuring purchases, timing sales, 1031 exchanges, and avoiding surprise tax bills
The paperwork that holds up in an audit: records, logs and elections that make your deductions defensible
Ask an Enrolled Agent: send in your questions, with answers in upcoming issues
Community Access: get future access to an exclusive group of fellow tax-aware real estate investors.
Founding member offer: $39/month, locked in for as long as you stay subscribed. The regular price will be $49/month. The founding rate is for early members only.
Not interested in the paid edition? No problem. You’ll keep getting the free monthly article, and you can unsubscribe anytime with the link at the bottom of this email.
Here’s the first edition of Real Estate Tax Intelligence.
Real Estate Tax Intelligence · Week of October 19, 2026
By Dean Doscher, MBA, EA, REALTOR®, enrolled to practice before the Internal Revenue Service.
Why your rental “loss” may not lower your taxes
Many high earners buy a rental expecting the loss on paper to cut their tax bill. Then they find out it doesn’t, at least not this year.
The reason is the passive activity rules. The IRS treats rental real estate as a passive activity in most cases. Losses from passive activities can generally offset only passive income. They can’t offset wages or business income.
There is one exception for regular landlords. If you actively participate (you own at least 10% and make management decisions, such as approving tenants and setting rent), you can deduct up to $25,000 of rental losses against other income.
That allowance shrinks as income rises. It’s reduced by 50% of modified adjusted gross income above $100,000 and is gone at $150,000 (for most taxpayers). Many high earners get none of it.
The good news: a disallowed loss isn’t lost. It carries forward to future years, and it’s generally released when you sell the property in a fully taxable sale to an unrelated buyer.
The end of the year is almost here. A few minutes now can make April 15th less painful.
Here are five year-end tax moves for rental owners:
1. Get new rentals ready to rent. Depreciation starts when a property is placed in service, meaning ready and available to rent, not when the first tenant moves in. A rental ready by December 31 can start depreciating for 2026.
2. Consider year-end small purchases. The IRS de minimis safe harbor lets many owners deduct items costing $2,500 or less per item or invoice, instead of depreciating them over years.
3. Pay deductible bills you want counted this year. If you report on a cash basis, as most individual owners do, expenses generally count in the year you pay them.
4. Gather receipts now, not in April. Repairs, insurance, property taxes, mortgage interest, management fees, travel to the property: put them in one folder by property.
5. Start a time log if hours matter for you. Some tax benefits depend on how many hours you spend on your rentals. Logs written contemporaneously (as you go) hold up much better than estimates made later.
This is general information, not tax advice for your situation; examples are hypothetical.
(Advertisement) For an individual consultation, contact me at www.realestateinvesting.tax
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Disclaimer: This newsletter is for general educational purposes only and is not financial, investment, tax, legal, or accounting advice. My content reflects personal opinions and research that should never be your sole basis for financial decisions. Tax laws and regulations are complex, change frequently, and vary by jurisdiction and individual circumstances. Before making any financial, investment, or tax decisions, consult qualified licensed professionals in your jurisdiction and conduct independent research. I make no representations or warranties about accuracy, completeness, or reliability of any information provided. All content is "as is" without warranties of any kind. You use this newsletter entirely at your own risk. I disclaim all liability for any losses, damages, costs, or expenses arising from your use of this information, including direct, indirect, incidental, consequential, or punitive damages. Past performance doesn't guarantee future results, all investments carry risk and may lose value, and tax situations are highly individual. Nothing here creates an advisor-client relationship. By reading this newsletter, you agree to these limitations, will seek appropriate professional advice before taking action, and agree to hold me harmless and indemnify me from any claims or damages arising from your use of this information. Advertisement.