I have Rental loss from last year. I made 263000 last year. does the rule that you cant use rental property loss apply to my gross or my adjusted income?

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Rental income is passive. Likewise, rental expenses are also passive. Therefore any losses on rental property are also passive. You can only use passive losses to offset passive gains. That's it. So once your rental losses get your taxable rental income to zero, that's all you can take. The remaining loss is carried forward to next year.