MAGI not correct for rental loss calculation

capozio · ‎April 13, 2020

My AGI is below 150k (on 1040) but if adding back the rental loss for MAGI calculation, it will be above 150k, which should disallow me from deducting rental losses. Turbotax does not seem to be able to catch this and still reports a rental loss deduction on the final return (schedule 1, line9). Please let me know if there is a way to correct this?

DavidS127 · ‎April 13, 2020

If your modified adjusted gross income (MAGI) as defined at this link is more than $150,000 and your rental loss is included on Schedule 1, line 5, check to see if you answered that you are a real estate professional as defined at this link. If so, the loss is not passive, and is not subject to the $150,000 MAGI limit.

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capozio · ‎April 13, 2020

Yes there shows a loss on Schedule 1, line 5.

My situation is that I am renting out part of my primary residence that I live in and I answered that I am not a real estate professional. Is there a way to see how the form 8582 is done by Turbo tax?

DaveF1006 · ‎April 13, 2020

You can pay for the product to look at the form or call tax support by selecting this link. They have the ability to research a diagnostic from your screen to help explain 8582 details.

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MAGI not correct for rental loss calculation

Investors & landlords

Investors & landlords

Investors & landlords