A taxpayer with a rental activity may be allowed up to $25,000 of rental losses against other (active or portfolio)income.

Question

Quizplus · Accepted Answer

This is true under certain circumstances. The $25,000 allowance is limited to taxpayers with adjusted gross income of $100,000 or less, and the allowance phases out for incomes over $100,000. Additionally, the taxpayer must actively participate in the rental activity to claim the allowance.

A Taxpayer with a Rental Activity May Be Allowed Up