Your English writing platform
Discover LudwigExact(24)
If you have at least a 10% stake in the property, and if you have less than $100,000 in adjusted gross income--calculated without an IRA deduction, Social Security income or the deductible portion of passive activity losses--you can deduct up to $25,000 in losses from rental activities against ordinary income, provided you're actively involved in the management of the rental property.
The iTunes store currently sells TV episodes for $1.99 and $2.99 apiece, but its rental activities are limited to movies.
All of your rental activities are generally considered passive, unless, of course, you are a real estate professional like a developer or property manager.
In addition, in Miller, the taxpayer was engaged in both construction and rental activities.
Put this all together, and it can create a problem for small rental activities.
When can a taxpayer overcome the presumption that all rental activities are passive and instead deduct rental losses in full?
Similar(36)
Leasing agents expect the new incentives to stimulate rental activity.
Except as provided in paragraph (7), the term "passive activity" includes any rental activity.
"Building values are still low, but rental activity and absorption rates are improving.
Developers and brokers say that rental activity has been strong at buildings that opened in late 2009.
The term "rental activity" means any activity where payments are principally for the use of tangible property.
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com