Thank you so much for the answer. I had never heard of carrybacks before, so if you don't mind just clarifying:
1. The Net Operating Loss carryover (or carryback) is essentially what is left over from my allowed passive losses, which can then be carried over to offset active gains or carried back to offset active income.
2. A portion of the Unallowed passive loss carryover might become allowed in 2009, according to the worksheets on Form
8582, but either way, they can always be applied against passive gains even if they remain in excess of the yearly limitation.
3. Lastly, I have to take the 2800 out of the allowed passive losses despite that fact that my deductible
and/or exemptions would offset this income, correct? In essence, I have to take as many allowed losses as I have income to offset them.
Once again, thank you so much for clarifying this. I had a friend tell me that was going to lose 3000 of the capital loss and 25000 of the allowed passive loss. Your answer is certainly more satisfactory!!!