When you dispose of a passive activity, any previous year unallowed losses will be freed up in the year of disposition
yes..but do the losses only go against the investment income or can they go agains income from my regular job
Also, for the sale, you will first have to recapture depreciation previously allowed, but the resulting loss is ordinary under Section 1231.
so it can offset your job income
so if I lost $100K , I can deduct $100 K from my ordinary income?
and can any remaining loss over what I can take in one year be carried to the nextg?
If a net operating loss (NOL) is generated, it can be carried back first, or you can elect to waive the carryback and carry it forward
ive been accruing losses each year to put against the sale of the property. However, there will be a loss based on my original purchase price and then the annual losses --ie taxes, maint, mortgage etc.
all are deductable against ordinary income?
when i sell
yes, when disposed
interesting. that makes me feel a bit better
Glad I could help
so in your opinion, i should sell it while my job income is healthy?
I would not opine on that without knowing intimate details
big loss on the condo...healthy tax payer on income here
In short, I would recommend you do it in a year you have income to offset, or perhaps help offset a ROTH conversion
ok good advice...i guess it can offset cap gains, and dividends as well as ordinary income?
thank you .,.i will accept your answers