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Level 2
December 14, 2021
Solved

Passive Loss Carryover

  • December 14, 2021
  • 2 replies
  • 25 views

If a taxpayer has passive loss carryover for an LLC with passive involvement, but in the next year, the taxpayer meets the active participation tests and the income is active, what happens to the Passive Activity Loss Carryover?  Does that get release to offset the current year active income?

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2 replies

PATAX
Level 12
December 14, 2021

Off the top of my head, no I do not think so... It was passive when the carryover was created, therefore it is passive in the future, I e. It maintains its original status.. I may be wrong but this is Just my opinion...

Level 15
December 14, 2021
PATAX
Level 12
December 14, 2021

👍Good job tax guy Bill... Wondering if the software will take care of this properly... this forum is better than going to a tax seminar...

IRonMaN
Level 15
December 14, 2021

I think he is going by the name "Professor Bill" today since he is teaching today's seminar 😁

Slava Ukraini!