Calculate how much of your rental loss is deductible this year vs suspended. Applies $25K allowance, AGI phase-out, and REPS rules.
📍 Property Address (optional)
✓ Saved
InputsYour Numbers
Rental Activity Income/Loss
Total Annual Rental Income?
$
Total Rental Expenses (excl. depr)?
$
Total Depreciation?
$
Your Tax Situation
Adjusted Gross Income (AGI)?
$
Federal Tax Bracket %?
%
Real Estate Professional??
Actively Participate??
Suspended Losses
Prior Year Suspended Losses ($)?
$
As-Is AnalysisCurrent
Enter values to see results
Rental Net Income/Loss
--
before passive rules
Deductible Loss
--
this year
Suspended Loss
--
carried forward
Tax Savings This Year
--
from deductible loss
Passive Loss Calculation
Gross Rental Income--
Operating Expenses--
Depreciation--
Net Rental Income (Loss)--
Passive Loss Rules Applied
AGI--
REPS Status--
Active Participation--
Deductible Loss (this year)--
Suspended to Future Years--
Pro FormaAfter Plan
Enter pro forma values
AGI Needed for Full $25K
--
AGI must be below
Suspended Loss Release
--
when property sells
5-Year Suspended Total
--
if not deductible
Cumulative Tax Savings
--
when losses release
AGI Phase-Out Analysis
$25K allowance phase-out: $100K-$150K AGI--
Your Current Deductible Amount--
Suspended Losses Compound--
📄 Email My Free Report
Full analysis sent to your inbox instantly.
1
Enter Rental Income & Expenses
Net rental income/loss = gross income minus operating expenses minus depreciation. A paper loss is common even with positive cash flow due to depreciation.
2
Enter Your AGI
The $25K rental loss allowance phases out between $100K-$150K AGI. Below $100K: full $25K. Above $150K: suspended entirely (unless REPS).
3
Active Participation
Active participation (making management decisions: approving tenants, repairs, setting rents) qualifies you for the $25K allowance. Most landlords qualify.
4
Real Estate Professional Status
REPS requires 750+ hours in real estate activities AND more hours in real estate than any other profession. If you qualify, rental losses are unlimited against any income.
5
Suspended Losses
Losses not currently deductible are 'suspended' and carried forward. They offset rental income in future years, or release in full when the property is sold.
6
Release at Sale
At property sale, all suspended passive losses become fully deductible. This can significantly reduce the tax bill on sale proceeds.
Passive activity loss rules (Section 469) prevent investors from using rental property losses to offset W-2 wages or business income -- unless they qualify as a Real Estate Professional (REPS) or qualify for the $25K active participation allowance.
The $25K allowance: If you actively participate in rental activities and your AGI is below $100K, you can deduct up to $25K of rental losses against other income. The allowance phases out $1 for every $2 of AGI between $100K-$150K.
The REPS loophole: If you spend 750+ hours/year in real estate activities AND more time in real estate than any other profession, your rental activities are non-passive. Losses offset any income, including W-2 wages. This is the most powerful tax strategy available to high-income real estate investors.