Real estate owners who rent their properties often incur tax losses due to depreciation write-offs and other allowable deductions, but the ability to deduct those losses might be postponed indefinitely by changes to PAL rules. In general, these rules limit deductions for rental property PALs to the amount of income that you have from other […]
Tag: PAL
Passive Activity Loss: How Recent Changes Can Affect You
Are you a passive investor in a business or rental activity? You aren’t involved directly in day-to-day operations of the project, but are still invested in its success. In general, it is a little easier to determine if you would be identified as a “passive” or “nonpassive” investor since the IRS has prescribed seven tests to […]