Ask Tom Anything - April 28, 2023

Transfers that do not release passive losses plus your questions answered

Apr 28, 2023

∙ Paid

In last month’s Ask Tom Anything, there was a question about what types of transactions do and do not release an activity’s suspended passive losses.

The disposal of a passive activity allows the release of any suspended passive losses from that activity; however, §469(g)(1)(A) requires that “all gain or loss realized on such disposition is recognized” to release the losses. What happens when this does not occur?

Continue reading this post for free, courtesy of Thomas A. Gorczynski.

Or purchase a paid subscription.