Passive Loss Limitations

I do not see any change in the law that changes the rule you are asking about.

I am still quite confused, after reading an article about QBI.

This is my 15th year of being a buy-and-hold landlord. I am able to take advantage of the passive losses since I actively participate in the managment of these properties.

My wife and I both have W-2 income that falls in the passive loss phaseout(100-150k AGI). Over the years our AGI is getting close to

150k. As a result we are left with very little loss allowed against our W-2 income. I was just trying to figure out if this phaseout would get adjusted for inflation since it has been that way since 1986.

IRC Section 199A seems to be interesting depending how some key terms are defined.

snipped-for-privacy@woh.rr.com wrote in news: snipped-for-privacy@4ax.com:

Not a tax pro, but my impression was that to take advantage of the QBI deduction for passive rental real estate, you would have to be a real estate professional as defined in the current code/regs. Further it seems like you might be limited if your MFJ income is over $315,000 (less for other filing status) though I guess the depreciable basis of the real estate assets might mitigate that limmitation. In my limited reading it wasn't clear if a real estate professional is one of the disfavored service businesses.

But it sounds like you don't have any income, just losses since you ask about the special allowance for claiming passive losses so don't think it matters in your situation?

scott s. ..

Yes that is correct I do claim losses every year. I am able to deduct mortgage interest, property taxes, and insurance against each property as well as repairs and other expenses.

I repeat: I can not find anything in the new law that changed Section

469(i). The section that allows up to $25K of losses against ordinary income if there is active participation. The amount phases out when AGI exceeds $100K.