Is my rental loss deductible now or suspended?

This free rental-income calculator separates Schedule E operating income from deductible and suspended losses. It applies supplied basis and at-risk capacity before passive-loss rules, then tests active participation, ownership, filing status, and special-allowance MAGI. It estimates the regular federal income-tax change only for the supported ordinary passive-rental scope.

Tax year

Filing status

Annual gross rent

Deductible operating expenses excluding depreciation

Allowed current-year depreciation

Prior passive loss carryover for this rental

Previously cleared basis and at-risk limits. Do not include basis-suspended or at-risk-suspended losses.

Current loss supported by tax basis

Already reconciled tax basis available for current losses, before at-risk/passive limits.

Current loss supported by amount at risk

Use the Form 6198 amount available for current-year loss, not automatically the mortgage balance. Prior at-risk carryovers are outside scope.

Other eligible passive income available to absorb losses

Exclude wages, interest, portfolio gains, PTP income, and income already used for other losses.

Rental special-allowance MAGI

Form 8582 MAGI, not ordinary AGI or taxable income. Include required addbacks; exclude Form 8582 passive income/loss.

Ordinary taxable income before this rental and its losses

After deductions, including any other eligible passive income entered above. No capital gains or qualified dividends.

Actively participated in managing the rental

Ownership throughout the year (%)

One ordinary passive rental; no personal use or special tax interactions

No real-estate-professional treatment, short-stay/services, PTPs, other rental losses or credits, sale, QBI eligibility, NIIT, AMT, NOL, or excess-business-loss cases.

rental income tax calculator

Quick answer

A rental loss may be deductible against passive income, eligible for a MAGI-limited special allowance, or suspended under basis, at-risk, or passive rules.

Also answers

rental loss deduction calculator
passive rental loss calculator
25000 rental loss phaseout

Good fit when

Owners of one ordinary passive rental
Separating current deductions from carryovers

Have ready

Gross rent, deductible expenses, and depreciation
Existing passive carryover
Tax-basis and at-risk loss capacity
Eligible passive income, rental MAGI, filing status, ownership, and active participation
Ordinary taxable income before rental

Result you get

Rental profit/loss, passive-income offset, special deduction, three distinct suspended-loss buckets, and regular federal income-tax change.

Rental sale tax Rental depreciation 2027 published amounts and planning status

How this calculation works

Subtract deductible expenses and depreciation from gross rent.
Apply externally established current-loss basis and at-risk capacities; keep those suspensions separate.
Combine surviving current losses with eligible prior passive carryovers, offset available passive income, then apply the status/MAGI special allowance.
Compare progressive ordinary income tax before and after the resulting rental income or allowed deductions.
2027 indexed limits are not presented as published law. The 2027 option uses a labeled 2026 provisional baseline; enacted nonindexed rules are kept separate.

Common mistakes and caveats

One ordinary passive real-estate rental only; no personal use, short-stay/service business, professional treatment, PTP, other loss activities, passive credits, sale, or prior at-risk/basis carryovers.
QBI eligibility, NIIT, AMT, excess business losses, and NOL cases are outside scope and must not be represented as a complete tax estimate.
Basis and at-risk capacities are supplied worksheet amounts, not inferred from property value or total mortgage debt.

FAQ

What is the rental-loss special allowance?

Eligible active participants can generally offset up to $25,000 against nonpassive income. It is reduced by half of special-purpose MAGI above $100,000 and reaches zero at $150,000. A loss can still offset eligible passive income without this allowance.

How does married filing separately change the allowance?

A separate filer who lived apart from their spouse all year has a maximum $12,500 allowance, phased out from $50,000 to $75,000 MAGI. Living together at any time eliminates this special nonpassive-income allowance, though ordinary passive-income offsets can remain.

Is active participation the same as being a real-estate professional?

No. Active participation is a different management-based test and ordinarily requires at least 10% ownership throughout the year. Real-estate-professional and material-participation treatment is outside this calculator's passive-rental scope.

Why are basis, at-risk, and passive suspensions separate?

They arise from different limitations and are not interchangeable carryovers. The tool applies supplied current-loss basis capacity, then supplied at-risk capacity, before calculating passive-loss deductions. A prior passive carryover must already have cleared the earlier limitations.

Can I enter my AGI as rental MAGI?

Not automatically. The rental special allowance uses its own modified AGI with specified exclusions and addbacks. Use the Form 8582 calculation, not taxable income, wages alone, or an ACA MAGI number.

Does a negative tax change mean I receive a refund?

No. It means the modeled regular income tax is lower after this rental result. Refunds also depend on withholding, payments, credits, and the rest of the return, none of which are reconciled here.

Last updated & sources

Last updated October 13, 2026.

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