CalculateRealEstateROI

Tax Concepts

Passive Activity Loss Rules

IRC §469 rules limiting deduction of passive losses against active income.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Rental losses are passive by default — they offset passive income only, unless REPS.

Examples

  • $30k rental loss carried forward if no passive income.

Common mistakes

  • Assuming rental losses always offset W-2.

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