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Submitted By: someone
Answered: April 19, 2023 4:43 am
Answered: April 19, 2023 4:43 am
I am a passive owner of a business and have suspended passive activity losses. If I sell the business, can I use all these losses?
Passive activity losses generally are limited to the extent of passive activity income for the year. Losses in excess of this income are suspended and used in future years when there is passive income to offset it. However, when there is a complete disposition of an activity, all suspended losses are deductible, regardless of the amount of passive activity income.
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Tax Glossary
Itemized deductions
Items, such as interest, state and local income and sales taxes, charitable contributions, and medical deductions, claimed on Schedule A of Form 1040. Itemized deductions are subtracted from adjusted gross income to arrive at taxable income. The amount of itemized deductions is also subject to a reduction when adjusted gross income exceeds certain limits.
