Generally, when a taxpayer disposes of their entire interest in a passive activity where all...
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Accounting
Generally, when a taxpayer disposes of their entire interest in a passive activity where all gain or loss is recognized, any prior year unallowed passive activity losses are:
Included with current-year passive activity gain or loss and allowed in full.
Deducted against ordinary income up to $3,000 and carried forward until depleted.
Permanently disallowed.
Carried forward to offset any future passive activity gains.
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