Anita01 is correct. According to the IRS Instructions for Form 8582:
Active participation. If you actively participated in a passive rental real estate activity, you may be able to deduct up to $25,000 of loss from the activity from your nonpassive income. This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities.
The special allowance isn’t available if you were married, are filing a separate return for the year, and lived with your spouse at any time during the year.
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