U.S. · Tax forms
Form 8582 line 6, modified adjusted gross income.
The MAGI that shrinks the $25,000 rental loss allowance, and what the IRS says to leave out.
Line 6 is your modified adjusted gross income (MAGI) for the special allowance for rental real estate with active participation. Combine everything used to figure adjusted gross income, but leave out the items the instructions list, such as passive losses, taxable social security and the student loan interest deduction. It cannot be below zero.
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Result
What line 6 leaves out
| Item | Meaning | What the IRS says |
|---|---|---|
| Passive activity loss | Do not take into account | Any passive activity loss as defined in section 469(d)(1). |
| Real estate professional loss | Do not take into account | Any rental real estate loss allowed to real estate professionals. |
| Taxable social security | Do not take into account | The taxable amount of social security and tier 1 railroad retirement benefits. |
| Traditional IRA deduction | Do not take into account | Deductible contributions to traditional individual retirement accounts (IRAs) and section 501(c)(18) pension plans. |
| Self-employment tax deduction | Do not take into account | The deduction allowed for the deductible part of self-employment taxes. |
| Savings bond interest exclusion | Do not take into account | The exclusion from income of interest from series EE and I U.S. savings bonds used to pay higher education expenses. |
| Adoption assistance exclusion | Do not take into account | The exclusion of amounts received under an employer's adoption assistance program. |
| Student loan interest | Do not take into account | The student loan interest deduction. |
| FDII and GILTI deduction | Do not take into account | The deduction allowed for foreign-derived intangible income and global intangible low-taxed income. |
| Portfolio income | Include | Include any portfolio income and expenses that are clearly and directly allocable to portfolio income. |
How line 6 is used
Part II is the special allowance for rental real estate activities with active participation. Line 5 is $150,000 (married persons filing separately who lived apart from their spouses at all times during the year enter $75,000). Line 7 subtracts line 6 from line 5, and line 8 takes 50% of line 7, no more than $25,000. If line 6 is greater than or equal to line 5, you skip lines 7 and 8 and enter -0- on line 9.
What to include
Beyond the exclusions, the instructions say to include portfolio income and the expenses clearly and directly allocable to it, any income treated as nonpassive (such as overall gain from a PTP and net income from an activity subject to the recharacterization of passive income rules), and any overall loss from the entire disposition of a passive activity, which is considered a nonpassive loss.
Not less than zero
The form says to enter MAGI but not less than zero. Enter all numbers in Part II as positive amounts.
Worked example
IRS example. Your adjusted gross income on Form 1040 line 11 is $92,000 and you have taxable social security benefits of $5,500 on line 6b. Your modified adjusted gross income is $86,500 ($92,000 − $5,500). Made-up continuation. Line 7 would then be $150,000 − $86,500 = $63,500, and 50% of that is $31,750, so line 8 is capped at $25,000.
More line pages in this set
Related lines: Form 8582 Line 11.
Sources
- Instructions for Form 8582 (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Form 8582 (Passive Activity Loss Limitations): the printed line wording and arithmetic on the form. Read November 2, 2026.
Instructions for Form 8582, 2025 edition. The line labels were read from the Form 8582 (2025) PDF the IRS had posted on the date read. Line numbers can shift between years, so check them against the form for your tax year. Examples marked made-up use invented figures; the others reproduce the IRS’s own examples.
Frequently asked questions
What goes on Form 8582 line 6?
Your modified adjusted gross income, but not less than zero.
How do I figure modified adjusted gross income for Form 8582?
Combine all the amounts used to figure adjusted gross income, except the items the instructions say not to take into account, such as passive losses, taxable social security and the student loan interest deduction.
Is portfolio income included?
Yes. The instructions say to include portfolio income and expenses clearly and directly allocable to portfolio income.
What if line 6 is at least line 5?
Skip lines 7 and 8 and enter -0- on line 9.
What is the IRS example?
Adjusted gross income of $92,000 less taxable social security benefits of $5,500 gives modified adjusted gross income of $86,500.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.