Rental Passive Loss Carryforward 2027 Calculator

Calculate rental passive loss carryforward 2027 — losses limited by passive income rules unless real estate professional. $25k allowance phase-out at $150k AGI.

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Passive Loss Rules

Section 469: Rental real estate = always passive. Losses can only offset passive income. Excess carries forward indefinitely. Released at sale of property.

$25k Allowance

Active participation in rental (you make decisions) allows up to $25k loss against ordinary income. Phases out $1 for every $2 over $100k AGI. Zero at $150k AGI.

Real Estate Professional Exception

750+ hours/year in real estate + more time in real estate than any other business. Then rental treated as active — losses fully deductible against ordinary income.

Trapped Losses

Carryforwards trapped until: 1) Future passive income offsets, 2) Property sold (released against gain), 3) You become real estate pro. Plan for trapped losses.

Source: irs.gov Section 469 Passive Activity Rules, Form 8582. Last updated: May 2026.