The income we earned in 2022:
Wifes W2 = $23K
My Sch C showed a loss = ($1057)
Our combined was SS was $33.3K and $3678 was taxable
Rental Property showing a loss ($143)
So for 2022 we cannot take the $143 loss because none of the income listed above is not considered passive income correct? And we would carry forward the $143 to next years return. Correct? And if we have a profit in 2023 that 143 loss will be applied to it, what if we show losses we keep carrying forward until we can use it - Correct?
Hypothetical question: we don't plan on selling the condo for a long time but when it comes time to sell it and the losses accumulated over the years because we didn't have passive income to apply it to, would those losses then be applied to the sale of the condo or applied to the gain if there is one or applied to recapture of depreciation? Just something we want keep in the back of our mind.
And thank you for taking the time to answer our questions. We greatly appreciate it.
