You might not be able to take the loss this year based on your income.
If that is the case, the loss will be carried over.
“Passive loss limitations are based on your adjusted gross income (AGI). If it is less than $100,000, you can claim up to $25,000 of losses reported on line 26 of your Schedule E. If you make between $100,000 and $150,000, the loss amount starts phasing out. If you make over $150,000, the loss on line 26 cannot be claimed.
For those with an AGI over $150,000, not being able to claim your passive loss might sound like heresy. But before you write a letter to Congress in protest, the loss is not actually lost. It is reported on IRS Form 8582 and carried forward.
In summary, Schedule E is for income or losses that are not generated from business operations. Schedule E income is considered passive. The result of Schedule E eventually finds its way to line 17 of your IRS Form 1040. If it isn’t there, you may have run into the passive activity loss limit.”
The college investor
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
