Deductions & credits

Ok ... so you don't have a BUSINESS  renting real estate where you pay SE taxes on the profits ... NO Sch C.   

 

You have passive rentals reported on a Sch E and if you are now a real estate professional on the Sch E then the losses should be allowed and not be subject to the passive loss limitations on the form 8582.   This may not release prior year passive losses.