I actively manage my rental property but it is less than 750 hours per year. TurboTax classes this as Passive Rental income, contrary to definition.

[chris30]

How can my single rental property. that I fully manage, considered active rental income?  I had losses that I'd like to account in my gross adjusted income.

[rikkej-ravnborg]

I would like an answer to this question also as I actively manage my rental property but my time spent on it is less than 750 a year. My income is less than the capped $100k income and yet, Turbotax classes my rental as passive income which means I cannot use my expenses to offset against my income.

[badefrancissun]

I'm in the exact same situation. I actively manage my condo rental (find renters, manage repairs, advertise the unit, draft leases, etc) and my income is less than $100k. Turbotax is not allowing me to deduct my modest rental property loss of $1,700, even though the tax laws say that I can.

[view2 · Accepted solution]

Renting out real estate property is generally considered a passive activity.The term "active participation" is a less stringent standard than "material participation."

You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental property and you made management decisions or arranged for others to provide services (such as repairs) in a significant and bona fide sense. Management decisions that may count as active participation include approving new tenants, deciding on rental terms, approving expenditures, and other similar decisions. 

   If your modified adjusted gross income (MAGI) is $100,000 or less ($50,000 or less if married filing separately), you can deduct your loss up to the amount specified above. If your MAGI is more than $100,000 (more than $50,000 if married filing separately), your special allowance is limited to 50% of the difference between $150,000 ($75,000 if married filing separately) and your MAGI.

Generally, if your MAGI is $150,000 or more ($75,000 or more if you are married filing separately), there is no special allowance. 

If you can't take the passive losses, you can carry them forward, and take them without limitation when you sell the property.