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capozio
Returning Member

MAGI not correct for rental loss calculation

My AGI is below 150k (on 1040) but if adding back the rental loss for MAGI calculation, it will be above 150k, which should disallow me from deducting rental losses. Turbotax does not seem to be able to catch this and still reports a rental loss deduction on the final return (schedule 1, line9). Please let me know if there is a way to correct this?

3 Replies
DavidS127
Expert Alumni

MAGI not correct for rental loss calculation

If your modified adjusted gross income (MAGI) as defined at this link is more than $150,000 and your rental loss is included on Schedule 1, line 5, check to see if you answered that you are a real estate professional as defined at this link.  If so, the loss is not passive, and is not subject to the $150,000 MAGI limit.

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capozio
Returning Member

MAGI not correct for rental loss calculation

Yes there shows a loss on Schedule 1, line 5.

My situation is that I am renting out part of my primary residence that I live in and I answered that I am not a real estate professional. Is there a way to see how the form 8582 is done by Turbo tax?

DaveF1006
Expert Alumni

MAGI not correct for rental loss calculation

You can pay for the product to look at the form or call tax support by selecting this link. They have the ability to research a diagnostic from your screen to help explain 8582 details.

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