Thank you. How does calculation work actually? Say say there is a gain of $280,000. Suspended Passive Loss is $20,000. Would it take $280,000-$20,000 first, leaving $260,000 gain subject to tax. Then because there is $250,000 exclusion, $260,000-$250,000 leaves $10,000 subject to tax?
Or does it consider exclusion first? Say gain is $240,000 then since there is $250,000 exclusion it is not subject to tax. Would the same $20,000 be carried forward into future years? Or would it still consider $240,000-$20,000 which wipes out the Suspended Passive Lose, then the remaining $220,000 is excluded because it is under $250,000? But then there is no loss that can be carried forward to future years?
Thank you.
@AmeliesUncle
