Thank you for this information, Dianne. We actually had a small loss on the rental properties in 2024 so the deduction is being applied to non-passive income. Pub 925 states "If you actively participated in a passive rental real estate activity, you may be able to deduct up to $25,000 of loss from the activity from your non-passive income" so it does apply to us. We were active participants with an AGI under $100K, but the "may be able" wording and the later "your loss is deductible UP TO the amount of the maximum special allowance" wording led me to question whether I could deduct less than that maximum and roll the difference forward along with the existing loss carryover that exceeded the $25K maximum (I.e., if I deduct the entire $25K allowed, there is still over $6K of losses rolling forward but I would like to only deduct $20K and roll $11K forward).
