is your adjusted gross income (line 11) is over $150,000. Then you are subject to the passive activity loss limitation for real estate. generally, rental real estate is a passive activity under IRC 469. the tax laws provide that if your adjusted gross income is over $150,000 before passive losses are taken into account passive losses are only allowed to the extent of passive income so in the end there is no current year deduction. look at form 8582
This law has been on the books for years so there should have been the same result in prior years.
if it is under up to $25,000 in losses should've been allowed with active participation
