Rental property

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@moonpetty58 wrote:

I just need to understand why t/p expenses are being disallowed due to Passive Activity Limits

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Because that is how Congress wrote the law.  Passive Losses are not not allowed, unless they can offset Passive Income.

There is an exception for real estate rental (up to $25,000) if (a) the taxpayer actively participates in it *AND* (b) their Modified AGI is under $150,000.

Any disallowed losses are carried forward (see Form 8582) and can be used whenever there is passive income (or when the property is sold in a fully taxable transaction).

Are you asking about the limit on losses when the client's income exceeds $150K, or about the expenses before the property was available for rent?

"I HAVE HAD previous discussion on this issue."

But you started this as a new topic, so now it is out of context. Worse, those that have been helping you on the original topic, here:

https://proconnect.intuit.com/community/tax-talk/discussion/rental-property/00/262581

Might not even know you started this here. And those here, won't see what you have already asked, answered, tried, and what still isn't working for you.

So now the same set of people, your peers on the filing due date, are not likely to see that the same one person has the same one issue but in two different places.

It helps to update your existing topic when you still need more info on that topic. And being that the original is in Tax talk, and you haven't asked a Pro Series question, it helps everyone, because your participation in the community on this type of issue is helpful to everyone. But not when it gets more confusing, split into different places, etc.

And please consider removing your real email address from this public internet forum, to avoid being spammed and attempts from scammers to reach you directly.