I have a new client whose previous accountant (a prestigious top 100 firm) wrote off $70K in rental real estate losses flowing through from a partnership return.  Taxpayers are not real estate professionals by trade; decided to invest in real estate via an LLC (1065).  My understanding is rental real estate is always considered passive unless you are a real estate professional.  Are there any other scenarios where this massive write off of rental real estate loss makes sense?  Am I missing something?  thanks in advance.