MAGI Calculation, Rental Losses?

Forum|Forum|1 year ago
February 14, 2025
1 reply
0 views

I understand MAGI = AGI + "certain deductions". One of those deductions is “Rental loss”. In the case of multiple rentals (multiple Schedule E columns), is Rental Loss the sum of rentals with a loss (Sch E, line 25)? Or net loss (Sch E, line 26, when negative)? As you can guess, I have multiple rentals, one with a loss, net of all is positive.

AmyC

Employee

Your MAGI or taxable income, is the 1040 line 15 amount. Line 8 shows schedule 1 income which includes many types of income, along with rentals. Sch 1 uses the Sch E to determine where things should go.

If your line 26 is positive, it goes to Sch 1, line 5.
if you have a loss, it will see if you have high income or a real estate professional to determine the amount of loss allowed. Higher incomes are limited to total loss on all houses of $25,000 while real estate professionals can deduct the full loss. See Pub 527 for more details.