I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me.
I am not certain that my question was clearly described. I (believe I know} that the losses on the real estate were limited to the "at risk" exposure. I have a tax basis of $280,000 for the real estate. My taxable gain on the real estate was $$820,000. However, I also had more than $1,000,000 loss on operations. If you are saying that the "unallowed" losses from operations are also treated as deductible up to the full amount of those losses, then, based my predictable income from other sources will be free of income tax for the remainder of my expected life time (I am 79 years of age) and I would be happy to send you a nice bonus relative to my local tax consultant. Otherwise, I must sign a substantial check to our friends at IRS.
Pending my reading of Publication, I will consider a favorable response to my question.
Thanks for your courtesy and prompt response.
I cannot locate the file http://www.irs.gov/pub/irs-pdf/16198.pdf.
I have searched BING and GOOGLE CHROME. Am I missing something?
Hi JackNo , I don't think you're doing anything wrong. I normally include 2 different ways to get to the information. One way is the address that I gave you. Here's the other: Instruction 6198 (Rev. November 2009)The information that you want starts on page 2 of the right had side, and again its concerning line 2.Please let me know if you have any other concerns or questions, and I apologize for not giving you both options in my previous answer.