yea, law firm currently NOT passive, although that's his end goal.  So sounds like §469 not even applicable in current situation.  I was doing research trying to figure a way to use the Office Building loss.  I was assuming or hoping the"trade or business" part of the grouping examples I was reading were not passive for some reason, but that doesn't make sense within 469. 

Appreciate your very helpful feedback. 

I guess his rent will be going up... Thanks.