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Was the house sold?
Was there other passive income?
Did you check the box that they are a Real Estate Professional?
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NMI.
Real estate professional?
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There isn't any other passive income and the professional box is checked. I know that they should be limited to the $25k and not report the full loss of 51k. Any other thoughts?
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@allie-mcwhorter wrote:and the professional box is checked.
If they are a Real Estate Professional and they "Materially Participate" in the rental, there is no limit. They are allowed to take the entire loss.
So just double-check that they actually DO qualify as a Real Estate Professional.
https://www.irs.gov/publications/p925#en_US_2018_publink1000104591
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The box isn't* checked and should not be considered a tax professional, but it's allowing the full loss.
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Have you looked to see if you checked anything that makes it non-passive?
