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huihuang2
New Member

I notice a deduction of my rental loss even though its a passive loss which I don't qualify to deduct from my income. Why can I fix it?

 
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MinhT
Expert Alumni

I notice a deduction of my rental loss even though its a passive loss which I don't qualify to deduct from my income. Why can I fix it?

Taxpayers whose modified adjusted gross income, or MAGI, is less than $100,000 can claim up to $25,000 in rental losses. The $25,000 cap is reduced $1 for every $2 a taxpayer's MAGI exceeds $100,000. For example, a MAGI of $110,000 exceeds $100,000 by $10,000 so the $25,000 limit is reduced to $20,000. The deduction of passive losses is completely phased out at $150,000 of MAGI.


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MinhT
Expert Alumni

I notice a deduction of my rental loss even though its a passive loss which I don't qualify to deduct from my income. Why can I fix it?

Is your Modified Adjusted Gross Income (MAGI) under $150,000?
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huihuang2
New Member

I notice a deduction of my rental loss even though its a passive loss which I don't qualify to deduct from my income. Why can I fix it?

Yes
MinhT
Expert Alumni

I notice a deduction of my rental loss even though its a passive loss which I don't qualify to deduct from my income. Why can I fix it?

Taxpayers whose modified adjusted gross income, or MAGI, is less than $100,000 can claim up to $25,000 in rental losses. The $25,000 cap is reduced $1 for every $2 a taxpayer's MAGI exceeds $100,000. For example, a MAGI of $110,000 exceeds $100,000 by $10,000 so the $25,000 limit is reduced to $20,000. The deduction of passive losses is completely phased out at $150,000 of MAGI.


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

huihuang2
New Member

I notice a deduction of my rental loss even though its a passive loss which I don't qualify to deduct from my income. Why can I fix it?

Got it! Thanks.
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