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@artyler1 wrote:

because it was a Self-Rental

Instead, the system is trying to classify all the Sch E losses as PALs and disallow them, and tax all the income from the LLC, and all is NOT right with the world. 

 

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Aren't losses from a Self-Rental (and also for rental of land) automatically passive?  Only gains are non-passive?

So that would mean the losses an only offset passive income (or up to $25,000 if income is under $150,000), right?