Busy123
Level 3

In 2018  my client filed HOH and his rental property had a negative net income. His MAGI was below $100K. For 2019 he filed MFS,  his expenses are capped at the amount of rent he received. His 2019 MAGI was $77K.  My client actively and material participates in his rental property management. Researching this, I believe his loss is limited to rental income because the client's MAGI exceeded $50K for MFS.  I tested this conclusion. I reduced the clients MAGI to below $50K. His rental loss was still limited to is rental income.  Why?  Is this a flaw in ProSeries Basic?

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