what is Passive Activity Loss Exception For Real Estate Professionals?
Ordinarily, rental activities are automatically considered passive activities and their losses may only be used to offset passive activity income. Thus, most rental activities involving real estate are treated as passive activities. However, there is an exception to this unfavorable passive activity loss rule for real estate professionals.
Related Questions
- I have losses from a passive rental real estate activity in which I actively participate. Can I offset the losses against my nonpassive income?
- What is the significance of the passive activity loss limitation (PALL) rules for real estate investors?
- Why does Ultimate Passive Income focus on real estate and not on other investment asset classes?
