Don in Upstate NY Posted April 12, 2012 Report Share Posted April 12, 2012 Client owns single family house which he has rented out for several years. In 2011 he sold his main home and moved into the rental home. Are the passive losses which were disallowed during the rental period now released since he no longer has any rental activity, or must they remain suspended until he disposes of the property itself? Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted April 12, 2012 Report Share Posted April 12, 2012 It is my understanding that they are not released until he disposes of the property. After all, he could change use again and go back to renting the property. In fact, he could change to personal use just long enough to take the losses and then change back to rental over and over again if that were sufficient to release the losses. Quote Link to comment Share on other sites More sharing options...
Don in Upstate NY Posted April 12, 2012 Author Report Share Posted April 12, 2012 Thank you. Lenghty discussion archived on another board indicates that you are correct. Question answered. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.