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Do the passive loss limitation rules apply to the CR Deduction?

April 26, 2017CR deduction limitation loss passive rules

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Do the passive loss limitation rules apply to the CR Deduction?

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The CR Deduction is treated in the same manner as the Low-Income Housing Tax Credit in applying the passive loss rules. That means that an individual taxpayer can have up to $25,000 of passive activity deductions (the CR Deduction together with the other deductions and credits not subject to the passive loss limitation), regardless of the taxpayer’s adjusted gross income. Corporations are not subject to the $25,000 passive loss limitation.