No Rent Erosion

[Snaggletooth]

Rental Property loss after depreciation, $3500. Gross Income over $150,000. I thought Rental Losses would phase out when income is between $75K and $150K.

Yet Drake is allowing the loss. Has the law changed? Have I missed something?

[TaxGuyBill]

Gross income? Or MAGI?

Is it showing up in part 1 of Form 8582? What is on line 6 of Form 8582?

https://www.irs.gov/publications/p925#en_US_2023_publink1000104575

[Snaggletooth]

TaxGuyBill -

You really hit the nail on the head. The "modified" adjusted gross income was significantly less than $150,000, so that freed up the loss.

Thanks