Sch E loss not transferring to 1040

Forum|Forum|3 years ago
February 19, 2023
3 replies
24 views

I have a client that manages his own rental property (active and material participation). First year renting. The rental has a $10K loss but it is not transferring to form 1040. Deductible real estate loss shows "0' in Sch E. Is there an income limit? MFJ ADJ Gross is $392K. I'm not understanding why my client cannot report this loss. Your feedback is appreciated.

ProSeries Basic

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Skylane

Intuit Community Champion

Look at passive activity loss limitations. They can’t take the deduction but there will be a NOL carryover

If at first you don’t succeed…..find a workaround

T

Terry53029

Intuit Community Champion

Rental real-estate is passive income. If your client is active there is an exception that allows him to deduct from other income up to $25000, but that phases out when AGI is $100,000 - 125,000. above $125,000 only deduct loss from other passive income.

Just-Lisa-Now-

Intuit Community Champion

"MFJ ADJ Gross is $392K."

Answers your question.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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