AliciaP1
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Investors & landlords

Since your rental activity is derived from passive activities at only 5 days of personal use, you cannot claim the loss against your non-passive income.  When you change the personal usage to 30 days the home now qualifies as a second home, not a rental, and stops being passive income.  You need to correctly report your usage, and if this means you have passive losses, you will be able to carry them forward until you sell the property and will be able to claim all applicable losses at that time. 

 

For more information on losses and carryforwards see Publication 925.

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