Technical topics regarding tax preparation.
20-Sep-2021 10:27am
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Taxpayer has a 5k loss on a rental property in 2020.
He makes 200k.
So normally he can't take the loss as an active participant who is not a re professional.
He however, sells the property in 2020.
Can he take the loss just by virtue of selling the passive property or
does he actually need a profit from the sale that exceeds the 5k loss from rental operations
to utilitze the 5k loss.
20-Sep-2021 10:29am
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When it's sold, unless it's stuck into an S corp or Master LLC....he can claim all the suspended losses...
20-Sep-2021 10:30am
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The loss is fully deductible, regardless of income, if the property is disposed of in a fully taxable transaction.
23-Sep-2021 4:45pm
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unless it's grouped with other rental properties that aren't sold
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