Passive Activity Loss Rules
Know whether your rental loss is deductible now or just suspended.Rental real estate is passive by default, so a loss usually cannot offset your wages unless you fit an exception. This Guide shows you the three that matter — the $25,000 special allowance, its MAGI phase-out, and the real estate professional rule — how much of your loss is allowed this year, how much is suspended, and how to carry the balance forward so a future sale frees it. It comes with an Excel tool that runs your allowance and keeps a multi-year carryforward ledger on your own numbers.WHO THIS IS FOR· Landlords whose rentals show a loss they assumed would offset their salary· Active-participation owners trying to size their $25,000 allowance and phase-out· Higher-income investors weighing real estate professional status· Anyone tracking suspended losses who does not want to lose them at saleWHAT'S INSIDEThe ebook — a plain-English Guide (2026 edition) with four chapters:· What “Passive” Means — active vs. passive vs. portfolio income, and why rentals are passive under §469· The $25,000 Special Allowance — active participation and the $100,000–$150,000 MAGI phase-out· Material Participation & the Real Estate Professional — the 750-hour / more-than-half test that makes losses nonpassive· Suspended Losses & Carryforward — tracking the balance and freeing it on a fully taxable saleThe Excel tool — PAL Carryforward Tracker. Enter your rental income, expenses, MAGI, and active-participation answer and it returns your net loss, the $25,000 allowance after phase-out, the loss allowed this year, and the amount suspended — plus a multi-year carryforward ledger that tracks the cumulative balance and the amount freed on disposition.WHAT YOU'LL WALK AWAY ABLE TO DO· Tell whether your rental loss is deductible this year or suspended· Size your $25,000 special allowance after the MAGI phase-out· Understand when real estate professional status makes losses nonpassive· Keep a clean, multi-year suspended-loss carryforward ledger· Claim the freed losses in the year you sell instead of leaving them behindFORMAT & DELIVERYInstant download. PDF ebook + Excel tool (.xlsx). Lifetime access and free updates.SAVE MORE WITH THE PACKThis title is part of the Real Estate Investor Pack — bundled at a steep discount ($449). Or get every Tax Confident guide with the All-Access Pass ($699).FAQIs this current? Yes — it uses 2026 figures and the current §469 rules. Confirm current-year limits with your preparer before you rely on a result.Do I need special software? Any spreadsheet app that opens .xlsx (Excel, Google Sheets, Numbers). Just fill in the light-blue cells.Is this tax advice? No. It is educational and makes you a sharp, informed client. It does not replace your own preparer.What if I am not a real estate professional? Most landlords are not, and that is fine — the $25,000 special allowance in Chapter 02 is the path most active-participation landlords use, and the tool sizes it for you.Refunds? If it is not what you expected, reach out at hello@taxconfident.co. Disclaimer: This product is for educational purposes only and does not constitute tax, legal, or financial advice. Tax rules and thresholds change — consult a qualified tax professional regarding your specific situation.taxconfident.gumroad.com · hello@taxconfident.co
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