Finance category
Mortgage, loan, investing, tax, and money calculators.
Passive Loss Suspension Calculator
Passive Activity Loss (PAL) rules suspend rental losses unless you have offsetting passive income, qualify as a real estate professional, or fall under the $25K active participation allowance (phasing out $100K-$150K AGI). Suspended losses carry forward indefinitely. This calculator determines how much loss is currently deductible and how much is suspended.
Currently allowable loss
$0
Suspended (carry forward)
$18,000
Total PAL carryforward
$18,000
How the math works
Passive Activity Loss (PAL) rules suspend rental losses unless you have passive income to offset, qualify as a real estate professional (full deductibility), or fall under the $25K active participation allowance (phases out from $100K-$150K AGI).
Suspended losses carry forward indefinitely and free up when you generate passive income or sell the activity. They never expire.
How to Use
- Enter annual rental loss and modified AGI.
- Enter other passive income (offsets fully).
- Indicate real estate professional status and active participation status.
- Read currently allowable loss and suspended carryforward.
Frequently Asked Questions
Real estate professional test?
750+ hours/year in real estate trade/business AND more than half of personal services time. If qualified, all rental activities can offset W-2 income — major tax planning lever.
Active participation?
Lower bar than material participation — owning 10%+ and making management decisions. Unlocks $25K allowance, phasing out $100K-$150K AGI ($0 above $150K).
Releasing suspended losses?
Generate passive income (more rentals) or sell the activity completely (suspended losses then offset any income, including W-2).
Related Calculators
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring
Next steps in Finance
Previous calculator
Passive Activity Loss Calculator
Passive Activity Loss (PAL) rules — $25K special allowance for active rental participation, phased out by MAGI above $100K.
Next calculator
Paycheck Calculator
Estimate paycheck deductions and take-home pay with federal tax, state tax, FICA, 401(k), and health insurance inputs.