Skip to main content
Estate

Are passive real estate losses deductible?

Quick Answer

Passive real estate losses are deductible only against passive income. A $25,000 special allowance applies to active rental managers, but it phases out between $100K–$150K MAGI. Excess losses suspend and carry forward, releasing on full disposition.

Passive loss deductibility rules across income brackets.
Warren Team
Updated April 26, 2026
39

Important Disclaimer:

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

Get Expert Advice

Schedule your free consultation with our fiduciary advisors

Book Free Consultation