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According to tax topic 425, accessible HERE, you can take all the previously suspended losses in the year you dispose of the property.
Here's the link (sorry I didn't add it) CLICK HERE
I am fine.
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.
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
Wow, Meagan. I would have never considered that answer. Thank you very much.
I did reply and I accepted. Additionally, I gave you a small tip for your quick response.
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.?