Oh boy! I was wrong in that you should NOT read the tax code because you don't know how to read statutory law. The first sentence in 469(i)(1) is "In the case of any natural person, subsection (a) shall not apply to that portion of the passive activity loss or the deduction equivalent" and THAT refers you back to 469(a) which disallows ALL passive activity losses and forces you to carry them forward. The $25,000 allowance is an EXCEPTION to sub (a) but ONLY to the extent you HAVE A LOSS! You can't carry the unused allowance forward to the next year. But you can do it your way and get audited for all I care. I'm done arguing with you.
