honestly, i don't see 50000, only in context of AGI limit for MFS
Exception
You actively participated in rental real
estate activities (see Special Allowance
for Rental Real Estate Activities, later),
and you meet all of the following
conditions.
Rental real estate activities with
active participation were your only
passive activities.
You have no prior year unallowed
losses from these (or any other passive)
activities.
Your total loss from the rental real
estate activities was not more than
$25,000 ($12,500 if married filing
separately).
If you are married filing separately,
you lived apart from your spouse all
year.
You have no current or prior year
unallowed credits from a passive
activity.
Your modified adjusted gross income
(see the instructions for line 7, later) was
not more than $100,000 (not more than
$50,000 if married filing separately).
You do not hold any interest in a
rental real estate activity as a limited
partner or as a beneficiary of an estate
or a trust.
If all the above conditions are met,
your rental real estate losses are not
limited, and you do not need to
complete Form 8582. Enter losses
reported on Schedule E (Form 1040),
Supplemental Income and Loss, Part I,
line 21, on Schedule E (Form 1040),
Part l, line 22. For losses from a
partnership or an S corporation, enter
the amount of the allowable loss from
Schedule K-1 in Schedule E (Form
1040), Part II, column (f). Enter losses
reported on line 32 of Form 4835, Farm
Rental Income and Expenses, on Form
4835, line 34c.
.