Rental loss limited by income

[Bonnie]

If a taxpayer has a rental loss that is limited by the size of AGI, can that be carried forward to future years?

[Lion]

Yes

Yes, it is suspended until he has rental income to use it against or a lower AGI if he qualifies to take up to $25,000 loss or until he completely disposes of the rental in a fully taxable disposition. Look at At-risk rules first on page 7-14 and then passive activity loss limits on page 7-10 to read about limits on rental losses.