✉news BusinessPersonal Finance first seen 7 d ago, last 6 d ago, peak #16
IRS Suspended Rental Losses Come Due All at Once at Sale
Original: For Years the IRS Hasn't Let Her Deduct the Rental's Losses. The Day She Sells It, Every Dollar of Them Comes Out at Once
A landlord who could not deduct her rental property's operating losses for years because of IRS passive activity loss rules now faces those deductions surfacing in full when she sells. The rule allows previously disallowed losses to offset gains at disposition, meaning a large one-time write-off, and potentially a big tax bill or refund, lands in a single year.
Why now: The counterintuitive way passive loss rules delay deductions until a property is sold is striking to landlords and tax filers.
Evidence
- For Years the IRS Hasn't Let Her Deduct the Rental's Losses. The Day She Sells It, Every Dollar of Them Comes Out at Once · 24/7 Wall St.
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