My understanding is you are not allowed the $25,000 passive loss deduction if the CX has portfolio income $34,301 and only other income is schedule C $263.

T

Terry53029

Intuit Community Champion

The $25,000 passive loss deduction for rental real estate has a phaseout based on your Modified Adjusted Gross Income (MAGI), not specifically investment income alone.

The deduction is reduced or eliminated entirely if your MAGI exceeds certain thresholds:

Full Deduction: You may be able to claim the full $25,000 deduction if your MAGI is $100,000 or less (or $50,000 or less if married filing separately and living apart).

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