removeps-groups[at]yahoo.com wrote:
- quote -

Tax on unrecaptured Sec. 1250 gain is part of a taxable transaction, right?

- quote -

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

D. Stussy wrote:
- quote -

Right, there might have been a prior election to treat all activities as
one. Then all the assets must be sold to dispose of the activity.

- quote -

Who gets the previously disallowed losses, the decedent or the heir(s)?

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Mark Bole wrote:
- quote -


- quote -

allowable depreciation.

- quote -

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Ed" <edurall[at]aol.com> wrote in message
news:cbf5a427-c35d-437a-9eb3-f50703df305f[at]q2g2000vbr.googlegroups.com...
- quote -

Actually, the correct term is no "upon sale", rather it is upon a "complete
disposition."

Hence, if you move into it you have not completely disposed of it, so the
losses stay suspended until you completely dispose of it.

Gene E. Utterback, EA, RFC, ABA

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Alan" <sfcnm-mtm[at]yahoo.com> wrote in message
news:3GbAl.21966$YU2.18653[at]nlpi066.nbdc.sbc.com...
- quote -

#2 is technically wrong but often results in the correct outcome.

#2 should be: Disposes of the entire interest in the ACTIVITY. The mere
selling of an asset used in a passive activity does not trigger recognition
of the suspended loss unless it was the LAST asset of the activity.

Disposition of the activity need not be a sale. Death counts too.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Alan wrote:
- quote -

So that means that if you exclude all gain under Sec. 121 for selling
your primary residence, the passive loss carryover disappears.

On the other hand, the new rules that require you to pro-rate the Sec.
121. gain for the prior use of a residence as a rental may lead to some
taxable gain (I know I'm using some imprecise terminology, but you get
the idea).

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Mar 30, 3:26 pm, Alan <sfcnm-...[at]yahoo.com> wrote:

- quote -

1. Can you balance passive income of one category with passive income
from another category? Examples: (i) balance your loss in the rental
R1 with royalties R2, (ii) balance your loss in rental R1 with a gain
in rental R2, balance your loss in rental R1 with S Corp gains S2. R1
is the the original rental that the OP mentioned, R2/S2 is a royalty
or rental that happens years afterwards.

2. What if you sell at a taxable loss? You can still take the carried
over losses, right? The losses would balance the recaptured
depreciation, and the remaining loss would reduce your AGI, like your
W2 income from a job. And if the AGI dropped below zero, would there
be an NOL?

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

<lotax[at]hotmail.com> wrote in message
news:2a883091-9668-4b6c-82d2-7c58277f4539[at]j9g2000prh.googlegroups.com...
- quote -

Correct. Conversion of a passive activity's assets to personal use is NOT
a disposition.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Ed wrote:
- quote -

until either you 1. Have passive income or 2. Dispose of the
property in a transaction that recognizes a taxable gain.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Mar 30, 5:02�pm, Ed <edur...[at]aol.com> wrote:
- quote -

subject to the "prior passive activity" rules. I think that's what
they're called. Someone will correct me.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I understand that upon the sale of a rental property, any remaining
passive loss carryovers can be taken in the year of the sale.

But what if the owner does not sell the property but instead moves
into the property and makes it his personal residence?

What becomes of the passive loss carryovers?

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >