@AliciaP1 thank you. Perhaps an example would help. Assuming the figures below and no other passive income, what is the correct way to handle the following? Is 10,000 Allowed Stock Loss offset by 10,000 ordinary income, or is the 10,000 Allowed Stock Loss suspended as there is no net income to schedule E, or something else?
Passive Income Entity A
Ordinary 10,000
Other Net Rental -20,000
Allowed Stock Loss, Entity A (Form 7203, Column C)
Ordinary 2,000
Other Net Rental 8,000
Total Sch E 10,000
