How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Megan C Your Own Question

Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 14145
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Tax Question Here...
Megan C is online now
A new question is answered every 9 seconds

When a taxpayer disposes of his or her entire interest in a

Resolved Question:

When a taxpayer disposes of his or her entire interest in a passive activity, how are any prior-year unallowed passive activity losses treated?
Submitted: 11 months ago.
Category: Tax
Expert:  Megan C replied 11 months ago.

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

How are you today?

Megan C :

According to tax topic 425, accessible HERE, you can take all the previously suspended losses in the year you dispose of the property.

Megan C :

Here's the link (sorry I didn't add it) CLICK HERE

Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 14145
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 3 other Tax Specialists are ready to help you
Customer: replied 11 months ago.

I am fine.

 

Expert:  Megan C replied 11 months ago.

Thanks for your follow up.

 

When a taxpayer disposes of a passive activity, the previously suspended losses are allowed to be taken in the current year. You can view tax topic 425, available HERE which spells this out.

 

Please let me know if you have any further questions. Thanks for the positive rating, by the way.

Customer: replied 11 months ago.

Megan,

 

Here are the choices:

 

They are combine with current year passive activity gain or loss to determine overall gain or loss

 

the prior year unallowd passive activity losses are deducted against ordinary income up to $3000 and carried forward until depleted

 

the prior year unallowed passive activity losses are permanently disallowed

 

the prior year unallowed passive activity losses can only be carried forward to offset any future passive activity gains

 

Any thoughts?

Expert:  Megan C replied 11 months ago.
Diana,

Thanks for your follow up. The answer is They are combine with current year passive activity gain or loss to determine overall gain or loss

The second option is the treatment of capital losses
The third option is incorrect
and the fourth option is how passive activity losses are handled before the year of disposal.

Please let me know if you need anything additional. If not, please rate as "excellent" so that I may receive credit for assisting you today.
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 14145
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 3 other Tax Specialists are ready to help you
Customer: replied 11 months ago.

Wow, Meagan. I would have never considered that answer. Thank you very much.

 

 

Expert:  Megan C replied 11 months ago.
Diana,

Glad I could help! If you need anything else, please don't hesitate to contact me. Thanks for the positive rating and generous bonus.

Thanks again!
Customer: replied 11 months ago.

Hi Megan,

 

I did reply and I accepted. Additionally, I gave you a small tip for your quick response.

Expert:  Megan C replied 11 months ago.
Diana,

I thank you for your generosity. If you need anything else please don't hesitate to contact me, or ask for me directly. Thanks again
Expert:  Megan C replied 11 months ago.
Hey Diana I'm online don't know why that other expert said I wasn't. If you would like me to answer your question please just ask for me again or tell the expert that's answering the question that you would like me to answer your question.I'm so sorry for your trouble...Here's my direct link. If you ask your question here, it will only go to me http://www.justanswer.com/finance/expert-myvirtualcpa/Megan
Customer: replied 11 months ago.

Hi Megan,

 

Lane answered the question. Sorry.... As usual, I actually knew the answer. I just wanted confirmation.

 

By the way, I have a question for you. Do you ever review client memos, case analyses, etc.?

 

 

Expert:  Megan C replied 11 months ago.
Thanks for your message. If you request me directly, I'll be sure to give top quality service. And yes, I'll review your memos and analysis. I was trying to get to your last question but someone switched it to another category on me, I know that gets frustrating to you as a customer so that's why I provided a link for you. :)Have a great nightMegan

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.