A shareholder of A manufacturing company had passive suspended losses. the interest was passive to him.
This year, he took control of the company and met his material participation requirement.
So now to him, the interest in the manufacturing business is no longer passive.
What happens to his prior suspended losses?
Do they follow the entity and become active , or
Do they sit in " suspense " awaiting passive income from some other source to free them up ?
any comments appreciated
Abby
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Abby Alhante
KURCIAS & ALHANTE, CPAs LLC
Melville NY
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