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June 6, 2025
Question

Losses on rental property

  • June 6, 2025
  • 1 reply
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I have been reading about the reason rental losses are not allowed and from what I have read it appears that losses should not be counted as passive if you are considered a real estate professional. When I answer the above questions on TurboTax the rental is still counted as passive. This is for tax year 2023. 

 

What am I missing about the rental property and the reasons why it is still being considered passive by TurboTax?

    1 reply

    Hi Palms
    June 6, 2025

    @Stevesleft wrote:

    What am I missing about the rental property and the reasons why it is still being considered passive by TurboTax?


    I think you missed the question asking you whether you materially participate as a real estate professional.

     

    Without material participation, the loss is still considered to be passive.