Passive Loss

Oct 09, 2012 1 Replies

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Hank Youngerman 13 years ago

I think I know this one but just checking.

Assume AGI is above limit for deducting passive losses.

2012: Gross income $10,000, expenses $5,000, depreciation $6000
2013: Gross income $10,000, expenses $3,900, depreciation $6000

2012, no loss allowed although loss after depreciation was $1000.

2013, $100 income reported, although $1100 is actual loss, you can deduct the undeducted depreciation from 2012.

Thanks.

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JoeTaxpayer 13 years ago

undeducted depreciation from 2012.

$1000 loss is carried forward from 2012.

2013 is confusing. "Although $1100 is actual loss." Looks like 2013 had a stand-alone gain of $100 ($10,000 - 3900 - 6000). The $1000 loss carried will negate $100, and remaining $900 carries forward unless your AGI is under the limit.

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