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Subject:  Re: Passive versus Active Income Date:  6/18/2012  11:58 PM
Author:  TMFPMarti Number:  116287 of 130425

When I rented it previously, I was not sure how TaxAct treated it. However, I did answer the question "Do you actively manage the property?", in the affirmative.

This is one of those rare occasions when I get to disagree with Peter. Well, there is the way he dresses, but I mean about taxes.

While rental real estate by a non-real estate professional is, by definition, passive, you can still use passive losses against non-passive income up to a certain AGI level if you actively participate. That's why the software was asking and why it does matter.

So, back to the pros for thoughts on that. There may be some discussion of active participation in Pub 527.

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