Forced to take $25k passive activity loss deduction?

[Kevin Luttrell]

Hi All! Hoping someone can help me with this question. 

For the last couple years I have had losses on my tax returns from passive rental real estate activity. I am not considered a "real estate professional" by the IRS definition. I understand that passive losses cannot reduce your taxable income and must be rolled over to be subtracted from future passive income, UNLESS you meet the special allowance that says you may deduct up to $25k in passive losses from taxable income if your modified AGI is less than $100k that year. I fall into that category. 

The problem is, I don't want to take the $25k deduction. My taxable income is actually so low in 2023 that if I take the $25k special allowance deduction for passive losses and the regular standard IRS deduction, my taxable income is negative. So right now my return shows me taking this full $25k passive loss deduction and only a portion of the standard deduction (keeping taxable income at $0). So I'm not benefiting from the full standard deduction because of the passive loss deduction. 

My tax preparer says there is no way for her to not apply the $25k passive loss deduction. I have to take it. I have a hard time believing this since the IRS describes it as a "special allowance" and "exception to the general rule". 

Any tax experts know if this is true or not? Am I forced to take the $25k passive loss deduction since I qualify for it?