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Exploring the Passive Loss Tax Exemption for ‘Real Estate Professionals’ In the OBBBA

One often-overlooked provision that was made permanent by the One Big Beautiful Bill Act could have a significant negative impact on certain taxpayers, particularly those in the rental real estate industry. Many rental real estate owners qualify for the real estate professional exception and thus are not subject to the passive loss rules.

5 minute read November 01, 2025 at 12:07 AM
By
Ezra Dyckman and Charles S. Nelson
Exploring the Passive Loss Tax Exemption for ‘Real Estate Professionals’ In the OBBBA

On July 4, 2025, President Trump signed P.L. 119-21 into law, commonly known as the One Big Beautiful Bill Act (OBBBA).

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