topic Rental passive activity loss in After you file

Rental passive activity loss

garycarols — Mon, 09 Mar 2026 09:18:24 GMT

My rental usually generates a small loss each year, which is subtracted from my other income. This year, I've evidently made too much wage income (>$150K) to be able to use that up-to-$25,000 loss against my other income. My question: Now, what happens to my rental loss? Thank you.

Re: Rental passive activity loss

Anonymous_ — Wed, 02 Mar 2022 19:47:20 GMT

@garycarols wrote:

Now, what happens to my rental loss?

The (passive) loss will be suspended and carried over to the 2022 tax year.

Re: Rental passive activity loss

garycarols — Wed, 02 Mar 2022 20:32:13 GMT

--what if my income continues to be >$150,000? For how many years will the loss carry over? Thanks.

Re: Rental passive activity loss

Anonymous_ — Wed, 02 Mar 2022 20:45:28 GMT

Suspended passive losses are carried over from year to year until they can be used (against passive income or when the property that generated the passive income is sold).

The suspended losses, however, do not expire.

Re: Rental passive activity loss

garycarols — Wed, 02 Mar 2022 21:02:18 GMT

Thank you for your help! 🙂