Investors & landlords

Yes ... if you now qualify for the RE Pro election the prior year PAL will be released  ... but be very aware of what you are doing before trying this as this is a big IRS audit trigger and it may not be worth it ...

 

There is a good article here with this quote at the end ...  

https://www.thetaxadviser.com/issues/2017/mar/navigating-real-estate-professional-rules.html

 

"Taxpayers may wish to forgo the election, however, if they have suspended passive losses attributable to a rental activity that they intend to dispose of in the near future. Freeing up the suspended losses upon disposition will often yield a larger tax benefit to the taxpayer than currently using any rental losses." 

View solution in original post