DavidD66
Expert Alumni

Deductions & credits

No, the LLC does not change anything.  It does not change the nature of the real estate loss.  The general rule is that you can't take a passive activity loss.  It is an exception to the rule that allows you to take up to a $25,000 passive loss on rental real estate, if your modified adjusted gross income is $100,000 or less (phased out at $150,000).  There aren't any exceptions to the exception.      

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