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Passive Activity Loss Carryover after Marriage?

Hello. I am a single real estate investor whose Modified Adjusted Gross Income (MAGI) is under $150,000. I have a $50,000 Passive Activity Loss Carryover (PALC) from previous years. I will be getting married later this year and the combined MAGI between my wife and I will be over $150,000. According to IRS Form 8582 Passive Activity Loss Limitations, I will no longer be able to claim the $50,000 PALC due to MAGI > $150,000.

 

Is there anything I can do to be able to claim the $50,000 PALC after marriage? I understand I will still be able to use this $50,000 PALC in the future if I sell one of my rental properties to offset profit (right?) - But I don't plan on selling anytime soon. Is there another way? Stay single? Lol

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1 Reply
M-MTax
Level 10

Passive Activity Loss Carryover after Marriage?

Congrats! You can continue to carry that over and offset any passive income with the PAL carryover it's just that you won't qualify for that special $25k allowance after you're married with that MAGI level.....not much you can do about that.

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