Ability to deduct 25K in Passive Activity Loss for rental real estate

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  • #203430
    startupcfo
    Participant

    My understanding is that this 25K allowance phases out starting at 100K AGI for *single* tax payers. The book implies that phasesouts still start at 100K for Married Filing Jointly. That sounds inconsistent with the rest of the tax code.

    Does that mean the couple would be better off filing as Married Filing Separate so they could each deduct 25K for their first 100K of individual AGI?

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  • #785406
    Anonymous
    Inactive

    This is from memory (dangerous), I think it's 100 for both, 50% reduction in the amount over 100, complete phase out @ 150. As to you second question, IDK.

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