Question
MFS Taxpayer not allowed rental loss.
- July 12, 2020
- 3 replies
- 28 views
In 2018 my client filed HOH and his rental property had a negative net income. His MAGI was below $100K. For 2019 he filed MFS, his expenses are capped at the amount of rent he received. His 2019 MAGI was $77K. My client actively and material participates in his rental property management. Researching this, I believe his loss is limited to rental income because the client's MAGI exceeded $50K for MFS. I tested this conclusion. I reduced the clients MAGI to below $50K. His rental loss was still limited to is rental income. Why? Is this a flaw in ProSeries Basic?
