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Investors & landlords

Generally, disallowed passive losses may be carried forward to the next tax year (Sec. 469(b)). However, if the activity continues to be passive in future years, losses are in effect carried forward until the underlying activity is disposed of (Sec. 469(g)).

<a href="http://www.irs.gov/publications/p925/ar02.html#en_US_2014_publink1000296629" rel="nofollow" target="_blank">http://www.irs.gov/publications/p925/ar02.html#en_US_2014_publink1000296629</a>