Rental income loss deduction is zero

deogratias3 · ‎March 22, 2020

Rental loss deduction is zero - why is that?

AnnetteB6 · ‎March 23, 2020

If your rental loss deduction is zero, the rental is a passive activity and the losses are passive losses carried forward until they can be used to offset passive income.

There is an exception that allows you to deduct up to $25,000 passive loss for rental real estate, but this exception does phase out as your modified Adjusted Gross Income (AGI) increases. It starts to phase out at $100,000 modified AGI and completely ends with modified AGI above $150,000. There are different limits and rules if Married Filing Separate.

To learn more, see the following TurboTax article: Real Estate Tax and Rental Property

The discussion about passive activity losses is at the end of the article.

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View solution in original post

AnnetteB6 · ‎March 23, 2020

If your rental loss deduction is zero, the rental is a passive activity and the losses are passive losses carried forward until they can be used to offset passive income.

There is an exception that allows you to deduct up to $25,000 passive loss for rental real estate, but this exception does phase out as your modified Adjusted Gross Income (AGI) increases. It starts to phase out at $100,000 modified AGI and completely ends with modified AGI above $150,000. There are different limits and rules if Married Filing Separate.

To learn more, see the following TurboTax article: Real Estate Tax and Rental Property

The discussion about passive activity losses is at the end of the article.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Rental income loss deduction is zero