Can I take passive depreciation as a QREP against active income?

[Josh Bowser]

BP - need some help here!

I'm a full time investor focused Realtor in the Atlanta metro. I invested in a smaller multifamily deal (24 units) with my buddy where I am 100% passive. We've gotten our K1 back and there is a decent chunk of bonus depreciation there. I will not meet the matierial participation requirements for this deal. I'm waiting for feedback from my accountant on this one but wanted to see what the community has to say about this.

Am I able to take this 'passive loss' against my 'active income'?

TIA!

[Stephen Nelson]

If you don't materially participate in the real estate rental activity, no, you don't get to deduct the passive losses.

You need to wait until you have passive income or you dispose of the activity.