deductible rental loss on rental

[L330]

I have more loss on my rental this year than last year, but my allowable deductible rental loss [schedule E, line 21] is significantly less this year.  

I indicated that I am an active participant.

[Mike9241]

look at form 8582 for the calculation of the allowable deduction - line 11

[DavidD66]

The reduction in your deductible loss may be due to your income.  A taxpayer with a rental property that incurs a loss can deduct up to $25,000 in losses per year if their modified adjusted gross income (MAGI) before the loss is less than $100,000. But for every $2 of MAGI over $100,000, the allowable rental loss is reduced by $1. In other words, the loss is reduced by 50% of the amount that the income goes over the lower income threshold.  Once your MAGI before the rental loss reaches $150,000, the special loss allowance will be reduced to $0.  Losses you aren't allowed to deduct are carried forward for future use.