Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Special passive activity rule for taxpayers in real property business when can i use this rule for my clients ?

boudintax
Level 1
 

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
itonewbie
Level 15

If you're referring to the special allowance of $25k, the MAGI must be less than $150k (phasing out from $100k) and the taxpayer must actively participate in the rental (e.g. decision making, tenant screening, etc.).

MFS is eligible only if taxpayer lives apart from the spouse all year but the phase-out range and special allowance are halved.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

0 Cheers
2 Comments 2
itonewbie
Level 15

If you're referring to the special allowance of $25k, the MAGI must be less than $150k (phasing out from $100k) and the taxpayer must actively participate in the rental (e.g. decision making, tenant screening, etc.).

MFS is eligible only if taxpayer lives apart from the spouse all year but the phase-out range and special allowance are halved.

---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
itonewbie
Level 15
For this, they don't need to be real estate professionals.
---------------------------------------------------------------------------------
Still an AllStar