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Can passive losses from rental property be used to offset other NIIT income?

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SandySp1

New member
Can passive losses a rental property be used to offset net investment income tax? The IRS NIIT FAQ article says that the income from rental properties can generate NIIT taxes, but doesn’t say anything about losses from rental property being using to offset income from other investments (e.g. dividends, gains from selling securities, etc.).
 


Taxing Matters

Overtaxed Member
Can passive losses a rental property be used to offset net investment income tax? The IRS NIIT FAQ article says that the income from rental properties can generate NIIT taxes, but doesn’t say anything about losses from rental property being using to offset income from other investments (e.g. dividends, gains from selling securities, etc.).
You are limited to the extent to which you may use a passive activity loss to offset other income. See IRS Publication 925 for the details on that.
 
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