Passive Loss Limitations

[12v...@woh.rr.com]

Are there changes coming wth the Trump Tax Bill relating to passive
losses?

I was reading through the bill trying to make sense of it.

Specifically, are there changes to the max passive loss of 25k against
ordinary income that starts phasing out when AGI reaches 100k and goes
to 0 at 150k?


Thanks in advance,
-12vman

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[Alan]

On 12/27/17 11:28 AM, 12v...@woh.rr.com wrote:
> Are there changes coming wth the Trump Tax Bill relating to passive
> losses?
>
> I was reading through the bill trying to make sense of it.
>
> Specifically, are there changes to the max passive loss of 25k against
> ordinary income that starts phasing out when AGI reaches 100k and goes
> to 0 at 150k?
>
>
> Thanks in advance,
> -12vman
>

I do not see any change in the law that changes the rule you are asking
about.

[12v...@woh.rr.com]

On Thu, 28 Dec 2017 20:17:07 EST, Alan <temp...@vacationmail.com>
wrote:

>On 12/27/17 11:28 AM, 12v...@woh.rr.com wrote:
>> Are there changes coming wth the Trump Tax Bill relating to passive
>> losses?
>>
>> I was reading through the bill trying to make sense of it.
>>
>> Specifically, are there changes to the max passive loss of 25k against
>> ordinary income that starts phasing out when AGI reaches 100k and goes
>> to 0 at 150k?
>>
>>
>> Thanks in advance,
>> -12vman
>>
>I do not see any change in the law that changes the rule you are asking
>about.

I am still quite confused, after reading an article about QBI.

This is my 15th year of being a buy-and-hold landlord.
I am able to take advantage of the passive losses since I actively
participate in the managment of these properties.

My wife and I both have W-2 income that falls in the passive loss
phaseout(100-150k AGI). Over the years our AGI is getting close to
150k. As a result we are left with very little loss allowed against
our W-2 income. I was just trying to figure out if this phaseout
would get adjusted for inflation since it has been that way since
1986.

IRC Section 199A seems to be interesting depending how some key terms
are defined.

https://www.kitces.com/blog/final-gop-tax-plan-summary-tcja-2017-individual-tax-brackets-pass-through-strategies/

[scott s.]

12v...@woh.rr.com wrote in
news:etoc4dt7t9pkude63...@4ax.com:

Not a tax pro, but my impression was that to take advantage of the
QBI deduction for passive rental real estate, you would have
to be a real estate professional as defined in the current code/regs.
Further it seems like you might be limited if your MFJ income is
over $315,000 (less for other filing status) though I guess the
depreciable basis of the real estate assets might mitigate that
limmitation. In my limited reading it wasn't clear if a real
estate professional is one of the disfavored service businesses.

But it sounds like you don't have any income, just losses since
you ask about the special allowance for claiming passive losses
so don't think it matters in your situation?

scott s.
..

[12v...@woh.rr.com]

On Fri, 29 Dec 2017 16:46:23 EST, "scott s." <75270...@csi.xcom>
wrote:

>so don't think it matters in your situation?
>
>scott s.
>..

Yes that is correct I do claim losses every year. I am able to deduct
mortgage interest, property taxes, and insurance against each property
as well as repairs and other expenses.

[Alan]

I repeat: I can not find anything in the new law that changed Section
469(i). The section that allows up to $25K of losses against ordinary
income if there is active participation. The amount phases out when AGI
exceeds $100K.