USA Passive Loss Carryover


Joined
Dec 11, 2019
Messages
1
Reaction score
0
Country
United States
What happens to passive rental losses that have accumulated when an individual transfers rental properties from being held personally to a single member LLC (which then elects to be taxed as an S-corp)? It's a related party transaction so I assume the losses aren't released. Do they just stay on the personal return to be offset with future passive income from the new LLC?
 
Ad

Advertisements

Drmdcpa

VIP Member
Joined
Aug 2, 2017
Messages
499
Reaction score
39
Country
United States
Why are you putting real estate into a corporation? That should be the biggest question. But in general passive losses should follow the property provided there is no change in control. If your client is 100% owner of the property before it is put into an LLC, and 100% owner of the LLC there was no change in control. But again I would seriously question anyone that puts real estate into a corporation. The LLC is fine and often recommended but electing to be taxed as an S corp is setting you up for tax traps.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

passive loss carryovers 11
passive loss carryover K-1 0
Passive Loss 1
carryover loss 3
Suspended passive loss 6
capital loss carryover 9
Capital Loss Carryover 4
Question passive losses 3

Top