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cmb325
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Rental losses with AGI over 150,000

In 2023, our W2 income was around $223k and real estate losses were 83k, which we were allowed to deduct (the entire amount of 83k).  This year, our W2 income is 267k and real estate losses were 147k, but rental loss that can be used to deduct taxable income is showing $0.  Why the difference? 

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Rental losses with AGI over 150,000

You entered something differently for 2024 and 2023 or something else changed. If it is a passive activity you should have Form 8582 in your return for both years. If your adjusted gross income before the rental loss is over $150K no passive rental loss should have been allowed in 2023.  perhaps the loss was not indicated as passive while 2024 was. Another possibility is that you had other passive income for 2023 such as from a partnership or S-Corp. Passive income would allow you rental passive loss up to the amount of the other passive income. 

 

There are certain situations where a rental activity is not passive

1) if you or your spouse are a real estate professional.

2) for certain short-term rentals where significant services are provided to the renters such as with a B&B (this would be reported on Schedule C not E)  

 

wages are not passive. from your remarks, it doesn't seem like you had other passive income.

we can't see your returns or tax files so unless there is something other than 1 or 2 above, I can't say what took place or whether your 2023 return needs amending.  

 

 

 

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