Special Allowance for Rental Real Estate Activities
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.
See page 3 : https://www.irs.gov/pub/irs-pdf/i8582.pdf
