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user17744465357

Level 2

Question

Rental property

Forum|Forum|4 months ago
April 1, 2026
1 reply
183 views

Is rental property considered passive or active income when you are working with property management company who asks your approval on tenants and major expenses?

Ask the Experts - MetLife - April 2026

Level 14

Rental property income is generally classified as passive by the IRS, even when using a property management company. While your involvement in approving tenants and major expenses constitutes "active participation"—allowing you to potentially deduct up to $25,000 in losses—it does not change the classification to active (non-passive) income unless you qualify as a real estate professional.

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