Tks tagteam for your reply..
So the way I understand what you're saying "..Per Section 469(c)(7), the election is applicable to each taxable year...," this means prior years carry-over passive losses can not be used to offset this year's (2020) "active" income.
So the only way to offset "ordinary/active" income in a given year (say 2020) is to have "fresh" passive losses generate from passive activity (apartment rental in my case), and this passive loss needs to be large enough to first offset "rental income" and whatever that is leftover, can then be applied towards ordinary income?
It's a mouthful to describe, but just want to get the concept right 😃 Thanks for your explanation.
