Sorry if this has been discussed already.

Say if I have a rental property owned under a C corp.

I am the sole shareholder of the C corp.

Besides owning the rental property, the C corp actually engages in other business and trade, rental income is actually less than 5% of the total gross revenues of the C corp. The C corp was not formed strictly for the purpose of owning a rental property.

Under these circumstances, will the C corp still subject to the passive activity loss limit if for a particular year the rental expenses are higher than the rental income?

I would assume yes. But when I was using Turbotax to simulate a mock return, it seems that Turbotax offsets the C corp's rental loss against the C corp's income from regular business and trade.

Is it possible that rental loss in a C corp is not subject to the passive activity loss limit? I tried many times on Turbotax and it keeps offseting the rental loss against regular income from business and trade.

Any tax experts out there?

Thanks
MJ