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Mentor
If it’s a long term rental (average stay is more than 7 days), then no. PAL can’t be used to offset earned income.
Subject Expert
Google says the below -
If you are actively managing the rental and earn under $150k then you may be able.
Reading IRS regulations is usually best on their own website. It will take about an hour, you should do it.
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The $25,000 Special Allowance (Active Participation): If you "actively participate" in the management of your rental property, you may be able to deduct up to $25,000 of your rental losses against your ordinary income.
Requirements: You must own at least 10% of the property and be involved in making management decisions (e.g., approving tenants, setting rental terms, authorizing repairs).
Income Limits: This allowance begins to phase out if your Modified Adjusted Gross Income (MAGI) is between $100,000 and $150,000, and is eliminated entirely above $150,000.
This is one of those times when getting an accountant is a good idea. You're asking for anonymous tax advice.
Even if you can’t take the loss it can be carried forward. (We are over the income limits and have used carry forward losses for years when rentals have done well)