No. The IRS has a special allowance for rental real estate activities. You can deduct up to $25,000 of rental losses against ordinary income. However, your loss begins to phase out at $100,000 ($50,000 married filing separately) and is suspended once your income reaches $150,000 ($75,000).
Suspended losses can be applied against other passive income or claimed in the year of sale.
See Special Allowance for Rental Real Estate Activities
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