Discussion:CAN NOL FOR RENTALS GO BACK 5 YEARS
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Discussion Forum Index --> Advanced Tax Questions --> CAN NOL FOR RENTALS GO BACK 5 YEARS
Discussion Forum Index --> Tax Questions --> CAN NOL FOR RENTALS GO BACK 5 YEARS
| 24 June 2009 | |
| IT APPEARS RENTALS QUALIFY UNDER SECTION 172 AS ELIGIBLE SMALL BUSINESS'S. ASSUMING THEY MEET THE INCOME TEST CAN THE LOSSES CARRIED OVER FROM 2007 TO 2008 BE COMBINED WITH 2008 LOSSES & BE CARRIED BACK 4 OR 5 YEARS? | |
RoyDaleOne (talk|edits) said: | 25 June 2009 |
| Disallowed passive losses can only be carried forwarded.
A net operating loss can have a rental component. | |
Harry Boscoe (talk|edits) said: | 25 June 2009 |
| If the taxpayer is a "real estate professional" and thereby gets *around* the per se rental-as-passive rule, it seems to me he's got a business loss and the potential to carry an NOL (if there is one) back for five years. But the overlay and interplay of the passive loss rules ('07 to '08) and then the NOL rules ('08 back to '03) in this case is intriguing. I'll bet I'm not seeing all of what's involved here... If you're in the kitchen, get me a cold one from the fridge. Thanks. | |
Harry Boscoe (talk|edits) said: | 25 June 2009 |
| Ooooh this is getting good. The taxpayer would have to not be a real estate professional in '07 so the net rental/passive loss would carry over to '08 but then he would have to be a real estate professional but *not* have to (or should I say "have to not") make the aggregation election in '08 because if he aggregates, then the 'new' activity - the aggregated one - is not the same activity as the unaggregated activities in '07.... Wow. | |
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