Hello all, if we made over $150k as W-2 earners, why are we still able to deduct net loses for our rentals? Per IRS, there is a limitation.

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Are you filing Schedule E or Schedule C for the rentals?

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another possibility is you checked the box that one of you is a real estate professional, which bypasses the PAL limitation. see if form 8582 is included in your return. if not that means something yo checked or entered is not treating the rental loss as passive.

also, it's not your w-2 that counts it's your adjusted gross income before the rental loss.

Hello all, if we made over $150k as W-2 earners, why are we still able to deduct net loses for our rentals? Per IRS, there is a limitation.

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Hello all, if we made over $150k as W-2 earners, why are we still able to deduct net loses for our rentals? Per IRS, there is a limitation.