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jpi
Level 2
December 11, 2020
Solved

Are suspended passive loss required to be taken against passive rental income?

  • December 11, 2020
  • 3 replies
  • 31 views

I have clients who just retired and only have a small amount of rental income from 3 rentals they actively participate. Even if suspended passive losses are not taken against the little passive income they have, they will not generate any tax liability. Is it mandatory to apply suspended losses?

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Best answer by jpi

Thank you.

3 replies

Terry53029Intuit Community Champion
Intuit Community Champion
December 11, 2020

I believe you must net your passive losses and passive income. see pub 925

    jpiAuthorAnswer
    Level 2
    December 13, 2020

    Thank you.

    TaxGuyBill
    December 11, 2020

    I agree with Terry; it is not an option to decide how much of a loss you want to take and how much you wan to carry forward.  If it is allowable, it is taken on the current return and does not get carried forward.

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