Is your MAGI too high to take advantage of the special allowance for a rental loss?

Rental income is considered passive income; however, it is subject to the same rate as your wages; however, it is not subject to Social Security and Medicare.Investment income is not subject to Medicare tax as long as you do not exceed certian MAGI thresholds ($200K single; $250K married):https://www.fidelity.com/viewpoints/personal-finance/new-medicare-taxes

Originally posted by Leon Yang: Minh L. and Ryan M. just a question about the IRA as I am not too familiar.

@Frank Yang thank you.  

In addition, a 3.8% Medicare surtax now applies to the lesser of “net investment income,”(NII) which includes most sales of rental real estate properties, or the amount by which your modified adjusted gross income (MAGI) exceeds a threshold of $250,000 for joint filers (or a MAGI of $200,000 for single filers).

Yin & Yang. 

CIRE Mag is an excellent resource.

@Frank Yang & @Ron Flatt the rules that govern loans and the "loan limits" are a combination of the Dodd-Frank, CFPB, Consumer Protection Act, and others (SEC is the Securities Exchange...that's for trading of stocks and what-not).  

Any advice for @Jeffrey Yang?

If your Modified Adjusted Gross Income (MAGI) is below certain thresholds ($150k if married filing jointly) then you can write off a certain amount of your passive losses against your ordinary income.