Re: Sched E Partnership and S Corp Inc/Loss Flow T...
Level 3

Investors & landlords

Questions still remain:

- if merely a passive investor, is the 25k offset to ordinary income available?  if so, is it captured in TT or do I have to do something on my own to adjust the return to reflect this benefit?

- are there any options at this point in 2020 to income shift backwards into 2019 to take advantage of the released PALs tax benefit?

- is there a way to look at capital accounts and current year disposals to guestimate potential PAL releases resulting from such activity?

- still unclear about released PALS relative to realized capital gains from disposal.  would have thought PALs would first be applied to any passive investment capital gains before taken as negative income above the line.  by corollary, would have thought passive investment capital gains would be offset by PALs before being offset by any capital loss carryforwards arising from capital market or other non-passive investments.  

 

Thanks for your continued feedback.  

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