If my rental property is active participation, why does TurboTax treat it as passive?

[PhiloD]

I should claim a loss since my participation in rental real estate is active.

[AnnetteB6]

You may be in the range where the passive loss is phased out or disallowed based on your Adjusted Gross Income (AGI).

There is an exception that allows you to deduct up to $25,000 passive loss for rental real estate, but this exception does phase out as your modified Adjusted Gross Income (AGI) increases.  It starts to phase out at $100,000 modified AGI and completely ends with modified AGI above $150,000.  There are different limits and rules if Married Filing Separate.

To learn more, see the following TurboTax article:  Real Estate Tax and Rental Property

The discussion about passive activity losses is at the end of the article.

[Critter-3]

You may be an active participant in the rental however rental income is always passive.