Asked by e

Up to what amount can an active participant in a passive rental activity with modified adjusted gross income below the limit deduct in rental losses on their California return?

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Answered by GPT-5 mini AI
Up to $25,000.

That special “active participation” allowance (for non–real estate professionals) applies if your modified adjusted gross income is $100,000 or less; it phases out between $100,000 and $150,000 of MAGI and is eliminated above $150,000. California follows the same federal allowance (subject to any other state-specific adjustments).