Can i offset my rental loss??

[RJ K]

I have 26k in rental loss but did sell a rental property for profit. Is it possible to offset the rental loss against the proceeds of a rental sale? I do not have any carryover loss from last year. 

My AGI is more than 150k so i am unable to classify as an "Active Investor"

I have W2 income - full time job

I also have self-employed income via 1099 for real estate commission

I have a dozen rentals totaling around 26k in loss. 

Any suggestions would be great! THANK YOU

[JulieS]

No, only the loss attributable to the rental that you sold can be used to offset the gain from the sale. The remaining losses will continue to be suspended losses until you sell those properties. 

[AmeliesUncle]

Yes, the sale of the rental house is passive income, and the $26,000 of passive losses can offset that passive income.

However, I suspect that you may qualify as a Real Estate Professional, in which case none of that is passive (assuming you "materially participate" in the rental) and your $26,000 of losses would not be limited at all, even if your income is over $150,000.   So be sure to read that part of the rental section to determine if you qualify as a Real Estate Professional.