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  • 1.  Suspended passive losses - used toward the sale of another property

    Posted 05-31-2023 01:11 PM

    Hi All,
    I have been researching the above and seem to be getting mixed reviews.  Does the statement below seem correct?
    "Selling a rental property for a gain will allow you to activate any suspended passive losses regardless of which property you sell and which property actually produced the losses. This means that you can sell property A for a gain and activate the suspended losses produced by properties B, C, and D."

    therealestatecpa.com/blog/strategies-suspended-passive-losses-rental-real-estate

    Thank you
    Mark Nieuchowicz



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    NIEUCHOWICZ, CPA PC
    29 South Central Ave
    Valley Stream, NY 11580
    Phone (516) 791-7599
    Fax (516) 792-0980
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  • 2.  RE: Suspended passive losses - used toward the sale of another property

    Platinum Most Valuable Member
    Posted 05-31-2023 01:45 PM

    That is exactly correct       AND

     

    When you Free up a suspended loss because of a gain, the suspended loss has no effect on the gain.  It provides an unexpected benefit., for you recognize capital gain on the sales , but it frees up ordinary loss.

     

    You make money on the VIG

     

    Hope it helps.

     

     

    Abby Alhante,  CPA

     

    Kurcias  & Alhante, LLC  CPAs

    525 Broadhollow Road   Suite 104

    Melville NY  11747

    516.829-5890  Ext  2   Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@KurciasAlhanteCPAs.com

    ( E mail response preferred )

     

     




    Original Message


  • 3.  RE: Suspended passive losses - used toward the sale of another property

    Platinum Most Valuable Member
    Posted 06-05-2023 08:43 AM

    Mark:

    You can use the losses from other properties against the gain after using any unused losses on the property that was disposed of.



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    Robert Brown
    Adeptus Partners LLC
    Jericho NY
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    Original Message


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