@Carl wrote:
Now, there is a few rules that will allow you to deduct each tax year, a maximum of $25K of your passive expenses from your "other" ordinary income. One of those rules is that you must be "actively involved" and "materially participate" in the management of your rental property.
That is incorrect. An owner of rental property only needs to be an active participant (and meet the income requirements) in order to qualify for the special $25,000 allowance; material participation is not required.
See https://www.irs.gov/publications/p925#en_US_2020_publink1000104571
