Passive Activity Loss Calculator

Calculate how much rental loss you can deduct this year based on your MAGI and participation status.

📍 Property Address (optional)
✓ Saved
InputsShared
Annual Rental Loss?
$
Modified AGI (MAGI)
$
Participation Level
Tax Bracket %
%
Total Losses Multiple Properties
$
As-IsCurrent
Enter values to see results
Deductible This Year
Carryover
to future years
Tax Savings
at your bracket
Max Allowance
$25K limit
PAL Calculation
Rental Loss
Your MAGI
$25K Allowance
Phase-Out Applied
Deductible Amount
Carryover
Pro FormaAfter plan
Enter values to see results
Pro Forma Deductible
multiple properties
Carryover
Tax Savings
REPS Benefit
if qualified
Pro Forma PAL
Total Losses
Deductible
Carryover
Planning Strategies
Become Real Estate Professional
STR < 7 Day Avg Rule
Use Carryovers on Sale

Enter your annual rental loss and Modified AGI. Active participants (250+ hours) can deduct up to $25,000 of rental losses against ordinary income, with a phase-out from $100K–$150K MAGI.

Passive Activity Loss (PAL) rules limit how much rental loss you can deduct against non-passive income. Most landlords are 'active participants' limited to $25K/yr deduction. Real Estate Professionals (750+ hours, >50% of work time in RE) can deduct unlimited losses. Suspended losses can be used when the property is sold.