Pasture Rent

[Hartford100]

I receive rent from 3 different pasture lands. Two have positive income. The third has a loss. In two years the property with the loss will start to report a profit. I do not actively manage the three properties.  I will report the rentals on Schedule E type of Property 5 - Land.   Even though all three properties are passive. Is my understanding correct that I cannot offset the profit from the two properties against the loss of the third? I would carry forward the loss and whittle it down by future profits on the third property on form 8582?

[Vanessa A]

You are correct.  You cannot offset one properties gains with another properties losses.  Yes, you can carry the loss forward to whittle down future profits by using form 8582. 

[Hartford100]

The two passive properties with profits get reclassed to non-passive because they are property type 5?