@user17720701181 wrote: My schedule E shows a loss and it should be allowed, based on my income, as I'm above the passive activity loss limitation phaseout threshold. However, line 1b on form 858...
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@user17720701181 wrote: My schedule E shows a loss and it should be allowed, based on my income, as I'm above the passive activity loss limitation phaseout threshold. However, line 1b on form 8582 is blank and my schedule E loss is showing as fully deductible, which is incorrect. Is anyone else having this issue? Any advice is appreciated. Can you clarify? Do you mean your income is BELOW the limits, so you are allowed the loss (up to $25,000)? Or did you mean your income is too high, so you should not be allowed any loss? Is your loss over $25,000, and that is why you think the Schedule E allowable loss is wrong? Did you indicate you are a Real Estate Professional? Did you indicate that you "Materially Participate"? Did you indicate that you "Actively Participate"?