Rental Property

Forum|Forum|4 months ago
April 1, 2026
4 replies
163 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

SharonD007

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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user17744465357Author

Level 2

I had to pay more than $25K in property taxes on rental property due to homestead exemption back taxes issues. How do I claim this expense when filing?