TaxGuyBill
Level 15
07-10-2023
08:28 PM
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Does the taxpayer qualify as a Real Estate Professional who Materially Participates in the rental?
If yes, your client should be able to prove it, and the IRS will allow all losses.
If the taxpayer does not qualify, the loss will be limited to $25,000 (or less, depending on MAGI and Active Participation).