PaulaM
Employee Tax Expert

Investors & landlords

Generally, the passive activity loss will offset other passive income. The exception with active participation is up to $25,000 for non-passive income, however this phases out with modified adjusted gross incomes between $100,000-$150,000 for married filing joint filers. After $150,000 there is no exception and the losses carry forward to future years with passive income.

 

IRS Pub 527

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