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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.

That means if your AGI is low enough (as in under $100K), you can deduct up to $25k of losses from this rental against other kinds of income. Its a special flavor of passive activities - passive, but you can use some of the loss. Perhaps you can call it "actively passive". ;-)

If you do not actively manage the property, then its a fully passive activity, and you cannot deduct any loss unless you have passive income (or dispose of the property).

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