CAN YOU FREE UP SUSPENDED PASSIVE LOSSES IN A YEAR YOU DISPOSE OF THE RENTAL ACTIVITY IN A PARTNERSHIP BUT STILL OWN AN INTEREST IN THE PARTNERSHIP THAT ONLY HAS CASH IN

boyce · ‎12-07-2019

CAN SUSPENDED LOSSES IN FROM A PARTNERSHIP BE FREED UP WHEN THE PARTNERSHIP SELLS ALL THE REAL ESTATE AND ONLY HAS CASH AND YOU ARE STILL A PARTNER GOING FORWARD?

sjrcpa · ‎12-07-2019

To the extent the partnership passes through a gain/income to you, passive losses can be used.

The more I know the more I don’t know.

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TaxMonkey · ‎12-07-2019

No, a partnership selling a rental activity does not free up passive losses of the partners.

sjrcpa · ‎12-07-2019

I think you mean does not.

The more I know the more I don’t know.

abctax55 · ‎12-07-2019

good catch...

HumanKind... Be Both

TaxMonkey · ‎12-07-2019

Yes you are correct, edited to say NOT !

Accountant-Man · ‎12-07-2019

Was there "a complete disposition of the rental activity?" Does the partnership have other rental properties, and are they separate from the sold one?

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