You only need to worry about a passive loss carryover if your AGI is over the limit.
Phaseout rule.
The maximum special allowance of $25,000 ($12,500 for married individuals filing separate returns and living apart at all times during the year) is reduced by 50% of the amount of your modified adjusted gross income that’s more than $100,000 ($50,000 if you’re married filing separately).
If your modified adjusted gross income is $150,000 or more ($75,000 or more if you’re married filing separately), you generally can’t use the special allowance. This is because the special allowance is reduced to $0 since the modified adjusted gross income is over the $100,000 amount.
Modified adjusted gross income for this purpose is your adjusted gross income figured without the following.
• Taxable social security and Tier 1 railroad retirement benefits.
• Deductible contributions to individual retirement accounts (IRAs) and section 501(c)(18) pension plans.
• The exclusion from income of interest from qualified U.S. savings bonds used to pay qualified higher education expenses.
• The exclusion from income of amounts received from an employer's adoption assistance program. • Passive activity income or loss included on Form 8582.
• Any rental real estate loss allowed because you materially participated in the rental activity as a Real Estate Professional (as discussed, later, under Activities That Aren’t Passive Activities).
• Any overall loss from a publicly traded partnership (see Publicly Traded Partnerships (PTPs) in the instructions for Form 8582).
• The deduction allowed for the deductible part of self-employment tax.
• Foreign-derived intangible income and global intangible low-taxed income.
• The deduction allowed for interest on student loans
