Passive Activity Loss

[rfk]

Can TP suspend an active participation PAL for real estate if they do not need it in current year, and hold it for the years to come until it is needed and exhausted? This person is not a Real Estate Professional.

Thanks.

rfk

[rfk]

I think I have answer...

In researching it appears that the passive loss will die out when the property is sold or disposed of. In this instance, one of two properties (the one in question particularly) was short sold in 2009, so the passive activity loss for this one sold will end with it. I think I am tired and forgot to think about this concept.

rfk

[Burke]

To answer your first question, no.