Rental loss with active participation

Forum|Forum|3 months ago
March 24, 2026
2 replies
10 views

I have a new client with a rental that was available for rent on September 1, 2025. He found a renter for December, 2025. He has active and material participation. His total loss was $8799 for the four months it was available for rent but the program is only giving him a $1780 loss (unless I check box G (other passive exceptions). Is it okay to check this box G (it prints out NPA >? Why doesn't it give the total loss without Box G checked? He has plenty of income.

I have no problems with previous clients and rental losses.

Thank you.

ProSeries Professional

T

TaxGuyBill

Level 15

@Debst99 wrote:

I have a new client with a rental that was available for rent on September 1, 2025.

(it prints out NPA

Was this is 100% personal property and is now 100% rental (no personal use expected for a year or more)?

If so, enter ZERO personal days.

But you will need to only enter expenses since it became available for rent, including manually prorating some annual items like real estate tax and insurance.

D

Debst99Author

Level 5

I have just entered the expenses since it became available to rent. Before that, they were having done major renovations. It was the wife's house and she didn't live in it at all in 2025. They got married in 2024 and she moved into her husband's house at that time. After I am done figuring the joint return, I am going to do separate returns because they are Ohio residents and since their incomes are close together, they might benefit from that.

T

TaxGuyBill

Level 15

@Debst99 wrote:

It was the wife's house and she didn't live in it at all in 2025.

Are you saying you entered ZERO personal days? Double check, because at first glance it seems like you entered personal days.

N

Norman2001

Level 6

Is their MAGI over 100,000?

D

Debst99Author

Level 5

Yes, AGI is $137,641 for joint return. I am going to figure separate returns after I am done with the joint returns. So the loss is reduced because of AGI over $100,000? I just looked at another client and their AGI was just under $100,000 so they got the full loss.

N

Norman2001

Level 6

Yes, no deduction if AGI $150,000 or more

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