I have an investment property currently rented. I am not a real estate professional and have a regular W2 job. The investment property is held for more than a year. In case i sell the property at a sale price lower than purchase price, can the loss be used to offset my W2 income? My CPA says passive losses can offset only passive income but i came across section 1231 losses https://turbotax.intuit.com/tax-tips/rental-property/selling-rental-real-estate-at-a-loss/L2RKgClm4 . I was reading may be the loss can be 1231 loss and may offset active income but did not have clarity. Thank you for answering my question!
