$25,000 loss, tax cap?

[David Egan]

I just came from my CPA's office where I was informed that there was a $25k loss limit for write-offs for a rental property. 

I Have spent the past year and $70k repairing and remodeling a 4-plex I bought in Jan 2016. I have well over $50k in write-offs. My CPA said that the govenment has imposed a limit on how much of a loss a property can take per year. "Even if you had a 100 unit apartment complex, you would still only be able to take a $25k loss in one year," he said to me. "No matter how much you spent on repairs." 

I have never heard of this before and on this large of an IRS bill this new law, has upset my financial plan for this project by a very large amount... at least for me. My questions are these:

Can anyone site me this rule so that I can study it? and, 

Is there a way that I can still write off everything that I wanted to this year?

[Russell Brazil]

@Brandon Hall is a CPA that can get into the nitty gritty.....but passive losses are capped of you do not qualify as a real estate professional. They do carry forward to take at a later date. Also the $25k passive loss can only be taken if your agi is under  $100k, and then begins to phase out gradually til it is not available at an agi of $150k. This is not a new law. The date on the IRS guidance on this is 2004.

https://www.irs.gov/businesses/small-businesses-self-employed/passive-activity-loss-atg-chapter-2-rental-losses