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Special passive activity rule for taxpayers in real property business when can i use this rule for my clients ?

boudintax
Level 1
 

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itonewbie
Level 15

If you're referring to the special allowance of $25k, the MAGI must be less than $150k (phasing out from $100k) and the taxpayer must actively participate in the rental (e.g. decision making, tenant screening, etc.).

MFS is eligible only if taxpayer lives apart from the spouse all year but the phase-out range and special allowance are halved.

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Still an AllStar

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itonewbie
Level 15

If you're referring to the special allowance of $25k, the MAGI must be less than $150k (phasing out from $100k) and the taxpayer must actively participate in the rental (e.g. decision making, tenant screening, etc.).

MFS is eligible only if taxpayer lives apart from the spouse all year but the phase-out range and special allowance are halved.

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Still an AllStar
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itonewbie
Level 15
For this, they don't need to be real estate professionals.
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Still an AllStar