U.S. · Tax forms
Schedule E line 22, deductible rental loss after limitation.
The loss you can actually deduct after Form 8582.
Line 22 is the “Deductible rental real estate loss after limitation, if any, on Form 8582”. If a rental loss is from a passive activity, Form 8582 may limit it and you enter the allowed part here. If it is not limited, enter the loss from line 21. Do not complete line 22 for royalty properties.
Look up a line item
Result
Line 21, line 22 and line 25 (2025 instructions and form)
| Item | Meaning | What the IRS says |
|---|---|---|
| Line 21 | Income or loss | Subtract line 20 from line 3 (rents) and/or 4 (royalties); if a loss, see instructions to find out if you must file Form 6198 |
| Line 21 (at-risk) | Amounts not at risk | Use Form 6198 for the deductible loss, write “Form 6198” to the left of line 21 and attach it |
| Line 22 | Deductible rental real estate loss after limitation | Shown in parentheses per property; from Form 8582 when the loss is limited |
| Royalties | Line 21 from a royalty property | Do not complete line 22 |
| Not limited | Not passive, or an exception applies | No Form 8582; enter the (loss) from line 21 on line 22 |
| Prior-year loss | Unallowed loss you can include this year | After completing Form 8582, include it on line 22 |
| Line 25 | Losses | Add royalty losses from line 21 and rental real estate losses from line 22 |
Why line 22 can be smaller than line 21
A rental real estate loss from a passive activity may be limited by the passive activity loss rules, and the instructions say you may need Form 8582 to figure the loss, if any, to enter on line 22 (see the Instructions for Form 8582 to determine whether your loss is limited). Line 22 holds the post-limitation figure, so line 25 uses line 22 rather than line 21 for rental real estate losses.
When you skip Form 8582
If the rental real estate loss is not from a passive activity, or you meet the exception for certain rental real estate activities explained earlier in the instructions, you do not have to complete Form 8582 and you enter the loss from line 21 on line 22.
Disallowed losses carry forward
If you have an unallowed rental real estate loss from a prior year that, after completing Form 8582, you can include this year, the instructions say to include it on line 22.
Worked example
Sam has a rental real estate loss of $(6,000) on line 21 for one property. After completing Form 8582, the allowed loss is $(4,000), which is the amount Sam enters on line 22. Line 25 then includes $(4,000), not $(6,000). Names and figures are made up; Form 8582 produces the real limit.
More line pages in this set
Related lines: Schedule E Line 18, Schedule E Line 19.
Sources
- Instructions for Schedule E (Form 1040) (2025): Line 21 and Line 22 instructions. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Schedule E (Form 1040) (2025): The printed line 21, 22 and 25 wording. Read November 2, 2026.
Tax year 2025 instructions (page last reviewed or updated April 30, 2026). The line labels were read from the Schedule E (Form 1040) PDF the IRS had posted on the date read, which is the 2025 edition; line numbers can shift between years, so check them against the form for your tax year. Names and figures in worked examples are made up.
Frequently asked questions
What is Schedule E line 22?
The deductible rental real estate loss after limitation, if any, on Form 8582.
When do I need Form 8582?
The instructions say you may need it if a rental real estate loss is from a passive activity; see the Instructions for Form 8582 to determine if your loss is limited.
What if my loss is not limited?
If it is not from a passive activity or you meet the exception, you do not have to complete Form 8582; enter the (loss) from line 21 on line 22.
Do royalty properties use line 22?
No. The instructions say not to complete line 22 if the amount on line 21 is from royalty properties.
How does line 22 reach line 25?
Line 25 asks you to add royalty losses from line 21 and rental real estate losses from line 22.
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.