LandlordGauge

Rental income tax calculator

Estimate annual rental net income and the additional income tax under the stated 2026 assumptions.

Your annual rental income

Your ownership share of annual rental income.

Deductible rental expenses, excluding depreciation and mortgage principal.

From your basis-checked depreciation schedule; enter the deduction once.

Taxable ordinary income without this rental, after deductions and the other activity loss limits. Not salary or MAGI.

The filing status applicable to your 2026 individual return.

Loss eligibility

Needed for losses and for profitable years with carried losses.

Your available Form 6198 line 20 amount, before deducting the loss. Includes qualifying financing; not simply market value or equity.

Your final Form 8582 line 6 MAGI for this tax year, including required adjustments. Held fixed for this planning comparison.

For example, approving tenants, terms or repairs. Mere ownership does not establish active participation.

Your and your spouse’s combined interest by value, throughout the year. At least 10% is needed for active-participation relief.

Use the IRS section 162 facts: continuity, regularity and a profit purpose. This determines Form 461 treatment; rental income is not automatically a business.

Carried losses from earlier years

This property’s unused Form 6198 loss only. It must pass the current at-risk limit before entering the passive calculation.

This property’s unused Form 8582 loss, already past the earlier at-risk limit. Do not also enter it in carried at-risk loss.

Part of the total above from years when you actively participated and held at least 10%. Current-year active participation is also required. Enter zero if none qualifies.

Real estate professional and material participation

One individual must meet both work tests, and this rental needs material participation.

For a joint return, either spouse may qualify individually. Do not combine spouses’ hours for these two professional tests.

Other passive activities and business income

Enter other activities’ overall profits and overall losses separately, after each activity’s own income/carryovers and earlier basis/at-risk limits. Do not net different activities together. Exclude this rental.

Total overall profits from other active-participation rental activities, Form 8582 Part IV.

The part of the preceding total from trades or businesses under section 162; enter zero for none.

Total overall losses qualifying for the special allowance, including eligible carryovers. Enter losses as positive amounts.

The part of the preceding loss total from trades or businesses; cannot exceed that total.

Other ordinary passive overall profits, Form 8582 Part V. Exclude wages, portfolio income, PTPs, capital gains and recharacterized income.

The part of the preceding passive profit total that belongs in Form 461.

Other ordinary passive overall losses including carryovers that do not qualify for the special rental allowance.

The part of the preceding passive loss total that belongs in Form 461.

Net Form 461 business income after earlier limits, excluding ALL passive pools above and this rental. Also exclude wages. If negative, use the next field instead.

The positive amount of the same net business loss. Enter either income or loss, not both. Exclude an NOL deduction and apply Form 461 capital-gain adjustments first.

Your result

Example result

Schedule E net

$10,000

Federal tax change

$2,200Additional ordinary income tax

The rental is treated as passive using your entered facts.

How the limits apply

Rental amount after at-risk limits
$10,000
At-risk loss carried forward
$0
This rental’s passive loss carried forward
$0
Special allowance used across passive activities
$0
Taxable income change after all modeled limits
$10,000
Combined excess business loss for NOL treatment
$0

Example: illustrative other taxable income of $80,000, MAGI of $95,000 and $100,000 at risk.

Rates as of