Passive Activity Loss Estate
This deduction phases out 1 for every 2 of magi above 100 000 until 150 000 when it is completely phased out.
Passive activity loss estate. Understanding passive activity loss rules the key issue with passive activity loss. Ordinarily rental activities are automatically considered passive activities and their losses may only be used to offset passive activity income. Any overall loss from a publicly traded partnership see publicly traded partnerships ptps in the instructions for form 8582. However since rental real estate income is considered to be passive in nature there are special rules called the passive activity loss rules that can limit the amount of rental real estate or.
Any rental real estate loss allowed because you materially participated in the rental activity as a real estate professional as discussed later under activities that aren t passive activities. Thus most rental activities involving real estate are treated as passive activities.