Passive Activity Loss Scenario – Single



Filing Status: Single

MAGI: 120,000

Rental Real Estate Loss: 31,000

Active Participant: Yes

Real Estate Professional? No

Current Year Deduction (See Calculation Below): 15,000

Carryforward Deduction:                                              16,000



MAGI:                                                                   100,000

Phaseout:                                                           20,000 (MAGI – 100,000)

Multiply Phaseout by 50%:                           10,000 (20,000 * 50%)

Maximum Special Allowance:                     25,000 (Given)

Minus Required Deduction:                         (10,000)

Adjusted Special Allowance:                        15,000

Rental Real Estate Loss:                                 31,000 (Example above)

Deduction Allowable:                                     (15,000) (From Adjusted Special Allowance above)

Carried Forward:                                              16,000 (31,000-15,000)



Disclosure: This is general information. Do not rely upon this for tax planning or tax preparation. Consult your personal tax professional for your personal situation.

If you would like us to look at your personal situation and provide specific tax recommendations, please contact us at: or 310-894-3211.

Thank you.


Michael Wander