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CAUTION

The special allowance isn’t available if you were married, lived with your spouse at any time during the year, and are filing a separate return.

Active participation. You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental property and you made management decisions or arranged for others to provide services (such as repairs) in a significant and bona fide sense. Manage

20 Chapter 3 Reporting Rental Income, Expenses, and

Losses

Publication 527 (2025)

• Your MAGI is $100,000 or less ($50,000 or less if married filing separately and you lived apart from your spouse all year).

• You don’t hold any interest in a rental real estate activity as a limited partner or as a beneficiary of an estate or a trust.

If you meet all of the conditions listed above, your rental real estate activities aren’t limited by the passive activity rules and you don’t have to complete Form 8582. On lines 23a through 23e of your Schedule E, enter the applicable amounts.