Rockbiter
Returning Member

Deduction of suspended passive losses from rental property on nonpassive income

We sold a rental property in early 2021. TurboTax has carried forward our suspended passive losses accumulated since 2006 totaling $174K. TurboTax seems to be deducting the full amount of the losses from our combined (married, filing jointly) taxable non-passive income (e.g., wages) with no cap or phase-out. Is there something we should be doing to limit this deduction?